Azerbaijan's economy is expected to decrease by 2.6% on the background of novel coronavirus (COVID-19) pandemics this year, ONA reports citing World Bank's report for June entitled "Global Economic Prospects: Europe and Central Asia".
It has been noted in the report that GDP will increase by 2.2% in 2021 in Azerbaijan. Economic activity in the region is vulnerable to global spillovers due to its openness to trade and financial flows, including remittances. In addition, for energy exporters in the region, which include Russia, Kazakhstan and Azerbaijan, continued low oil prices are expected to weigh on growth.
According to the report, coronavirus pandemics will cause an increase of funds of the state budget, directed to health, provision of postponement in payment of taxes for taxpayers, and expansion of measures, aimed at the social defense of population in Azerbaijan.
Furthermore, according to the expectations of the World Bank, after severe decrease in oil prices, it will expands its strategical investment plans on renewable energy sources in Azerbaijan.