PASHA Bank, one of Azerbaijan's largest banks, has published its second quarterly review covering Azerbaijan's economic performance during the first half of of 2014. In January-June of 2014, the economy has continued to grow under a huge surplus of the external sector and on-going fiscal consolidation. The non-oil economy has been the main driver of overall growth and all industries of the non-oil sector have contributed to the growth positively.

Elman Eminov, Head of PASHA Bank's Economic Research division, commented: "Reduction of investment spending of budget, expansion of domestic food production, consumer lending cooling down by Central Bank has decreased the import and as a result non-oil external deficit has improved a bit. In addition, inflation has remained in the single digits and this is expected to remain stable for the remainder of the year. In general, robust macroeconomic position of the country opens wide opportunities in successful management of rebalancing of government-private demand."

Ahmet Ustmen, Head of PASHA Bank's Investment Banking & Treasury Department, also commented: "The first successful placement of Azerbaijani government bonds in the international capital markets at the beginning of March 2014 could stimulate further international interest in Azerbaijan's domestic capital markets. In addition, the recent prudential measures taken by the Central Bank of Azerbaijan could intensify market-based financing. In line with its domestic and regional expansion, PASHA Bank is contemplating to play an active role in supporting this process, especially in debt capital markets."

The Bank's quarterly reports are developed by in-house economists and reflect Azerbaijan's key dynamics, including trends in the domestic financial and banking system, key policy changes and growth forecasts for the year. The reports are available in both Azerbaijani and English and allow existing and potential customers to closely monitor macro and micro-economic trends affecting their business objectives.