Rise in oil and gas output fail to prevent Azeri economy shrinking

Shah Deniz platform off Azerbaijan
Shah Deniz platform off Azerbaijan

Azerbaijan’s oil production went up 0.7% to 24.7million tonnes in the first half of 2016, while natural gas output rose by 500million cubic metres, according to the country’s statistics committee.

But Azerbaijan’s economy still contracted by 3% compared with the first sixth months of 2015, the committee said, Reuters reported.

Low oil prices and currency devaluation caused the country’s economic growth to slow to 1.1% last year from 2.8% in 2014.

Azeri authorities are forecasting 1.8% growth this year.