Azerbaijan to avoid economic crisis in Europe next time
By Aynur Jafarova
Azerbaijan will be able to avoid an economic crisis in Europe next time, the European Bank for Reconstruction and Development (EBRD) said in a newly-released report.
The report said the economic growth of Azerbaijan will stand at 3.5 and 3 percent respectively in 2014 and 2015.
EBRD also said Ukraine's economy will fall to 7 percent this year, and will be equal to zero in 2015. This comes as the neighboring Russia's economic growth could be equal to zero this year, but next year, it may observe a 0.8-percent-growth.
Being the fastest growing economy in the world during the last ten years, Azerbaijan conducted some socio-economic reforms which led to prosperity, reduction of unemployment and poverty so far. The country's economy grew more than three times during the last ten years. This is the fastest economic growth rate in the world.
The International Monetary Fund (IMF) predicted that Azerbaijan's inflation would be 3.5 percent in 2014 and 4 percent in 2015.
IMF noted in the World Economic Outlook Report that the inflation in Azerbaijan is expected to be 4.25 percent in 2016, and 4.95 percent in 2017, 2018 and 2019.
Azerbaijan has a good reputation as a country which protects investment properly. During the last ten years, $170 billion was invested in Azerbaijan. Last year the figure stood at $28 billion, of which 70 percent was local and 30 percent, foreign investment.
The real GDP growth in Azerbaijan amounted to 5.8 percent in 2013. The country's GDP in 2013 increased up to 57 billion manats.
At the same time, poverty dropped almost ten times in the country. Now it is standing at 5 percent. Azerbaijan has also resolved the issue of unemployment. The jobless rate is standing at around 5 percent. The country's foreign debt is only 8 percent of GDP, which is one of the best parameters in the world.
Azerbaijan's credit ratings have been upgraded by major rating agencies like Standard & Poors, Moody's and Fitch.