Fitch expects private consumption to grow in Azerbaijan

Finance

08 October, 2021
11:31

Fitch expects private consumption to grow in Azerbaijan

Fitch expects private consumption in Azerbaijan to contribute 1.5 percentage points (pp) to growth in 2021 before rising to 2.1 pp in 2022, Report informs referring to the Fitch Solutions report.

Like in most economies, the pandemic hurt this component of GDP of Azerbaijan the most in 2020, according to the document.

The pandemic hit household income especially hard due to the negative impacts that lockdown measures had on the job market.

“In 2021 and 2022, while we expect the unemployment rate to remain sticky, it is likely that the job market will show improvement on the back of re-opening of the economy,” reads the report.

Unemployment in Azerbaijan surged from 4.8% in 2019 to 6.3% in 2020 according to data from the State Statistical Committee. The accommodation and food services sector saw the sharpest decline in the number of jobs, dropping by 19.4% between 2019 and 2020.

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