TBILISI: The International Monetary Fund (IMF) sees Azerbaijan's economy contracting by 1.1 percent in 2011 due to a decline in oil output before returning to growth next year, the group's mission chief to the oil-rich country told Reuters.
The IMF's mission chief for Azerbaijan, Nadeem Ilahi, said the Fund projected the country's gross domestic product (GDP) to grow by 3.7 percent next year, which is still much lower than the oil-fuelled boom of 2003-2007 when growth averaged 21 percent.
"The IMF projects a contraction of 1.1 percent in the overall real GDP growth for 2011 compared to the increase of 5.0 percent in 2010," he said in e-mailed replies to questions from Reuters.
"This contraction will be driven by the sharp decline of about 11.0 percent in oil output, following shortfalls in new well delivery and maintenance problems," he added.
Ilahi said consumer prices were expected to rise 8.0 percent in 2011, in line with the government's prediction of single-digit inflation.
"We project inflation will decline slightly to 7.5 percent next year, supported by fiscal tightening," he added.
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