Azeri economy enduring crisis despite falling oil revenues
The global crisis has only reduced Azerbaijan`s oil
revenues, despite its affecting both the financial and overall
economic situation in Russia, Ukraine and Kazakhstan, participants
of a conference held in Baku have concluded.
The conference was organized by the Norwegian embassy and the Economic and Political Research Center.
Addressing the event focusing on the threats posed by the world financial downturn to oil-based economies, Gregori Yedzherchak, head of the World Bank office in Baku, said Azerbaijan has sustained a lesser impact by the global economic meltdown than have other countries. According to Yedzherchak, the country`s currency reserves amounting to $19 billion will help it to continue warding off the crisis.
At the same time, parliament member Ali Masimli said assistance to the real sector should be expedited. He warned that if the government fails to approve an anti-crisis program soon, the delay could make things worse for the Azerbaijani economy. "The greatest impact of the crisis on Azerbaijan is falling crude prices, exorbitant and unfounded rises or reductions in the rate of the manat [the national currency] and delays in [the adoption of] the anti-crisis program. These three factors could deal a blow to Azerbaijan," the MP said.
Bruno Pouezat, the UN Resident Coordinator in Azerbaijan, said the UN welcomes the steps taken by Azerbaijan to ward off the crisis, but recommended taking additional action in this area.
"Azerbaijan has been efficiently managing its oil resources for many years. It is as a result of these efforts that it has managed to avoid the crisis. But all this is not grounds to be at ease, as we all have seen what the crisis has done to the developed European economies," Pouezat said.
Meanwhile, the International Monetary Fund released its latest projections on the global economic crisis. The IMF head Dominique Strauss-Kahn said a recovery of the world economy might take place in about one year and economic growth could be expected no earlier than in the first half of 2010.
Strauss-Kahn said a host of measures were required to secure economic development, including stabilizing the finance sector and the government`s assistance to the economy and emerging markets.
The conference was organized by the Norwegian embassy and the Economic and Political Research Center.
Addressing the event focusing on the threats posed by the world financial downturn to oil-based economies, Gregori Yedzherchak, head of the World Bank office in Baku, said Azerbaijan has sustained a lesser impact by the global economic meltdown than have other countries. According to Yedzherchak, the country`s currency reserves amounting to $19 billion will help it to continue warding off the crisis.
At the same time, parliament member Ali Masimli said assistance to the real sector should be expedited. He warned that if the government fails to approve an anti-crisis program soon, the delay could make things worse for the Azerbaijani economy. "The greatest impact of the crisis on Azerbaijan is falling crude prices, exorbitant and unfounded rises or reductions in the rate of the manat [the national currency] and delays in [the adoption of] the anti-crisis program. These three factors could deal a blow to Azerbaijan," the MP said.
Bruno Pouezat, the UN Resident Coordinator in Azerbaijan, said the UN welcomes the steps taken by Azerbaijan to ward off the crisis, but recommended taking additional action in this area.
"Azerbaijan has been efficiently managing its oil resources for many years. It is as a result of these efforts that it has managed to avoid the crisis. But all this is not grounds to be at ease, as we all have seen what the crisis has done to the developed European economies," Pouezat said.
Meanwhile, the International Monetary Fund released its latest projections on the global economic crisis. The IMF head Dominique Strauss-Kahn said a recovery of the world economy might take place in about one year and economic growth could be expected no earlier than in the first half of 2010.
Strauss-Kahn said a host of measures were required to secure economic development, including stabilizing the finance sector and the government`s assistance to the economy and emerging markets.
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