Azerbaijan lowers outlook, expects economy to shrink by 5% this year

Azerbaijan has lowered its economic outlook, projecting its oil-driven economy will shrink by 5% this year from an earlier forecast of 3.8 percent, the finance ministry said on Saturday.

Its updated budget will be discussed next week.

The ministry also lowered its 2020 oil price forecast, which it uses to calculate its budget, to $35 per barrel from $55.

Its budget deficit is projected to rise to 3.368 billion manats ($2 billion) from a previously expected 2.760 billion manats.