Azerbaijan to reduce the planned by budget oil price by twice – to $25/barrel

​Azerbaijan has increased the inflation forecast for 2016 to 10-12% while previously it was supposed not to exceed 3.3%. Azerbaijan will also reconsider the budget-2016 reducing the forecast oil price from $50 to $25/barrel.

According to the renewed socio-economic forecast of the Ministry of Economy, the inflation in 2016 is forecast at 10-12%, the Minister of Finance, S. Sharipov, said.

In 2015 the inflation in Azerbaijan made up 4%.

According to the Minister, the reconsideration of the forecast is caused by the growth of inflation pressure as a result of the devaluation of the national currency in December 2015.

S. Sharipov said that due to the devaluation the Government plans to reconsider the budget-2016 increasing the profitable part from 14.57 bln manats to 16.4 bln manats, expenditure part- from 16.26 bln manats to 18.2 bln manats.

The State Oil Fund of Azerbaijan plans to save almost $2 bln in 2016 due to the devaluation of the manat.