Azernews.Az

Economic figures posted in the first quarter of 2009 show a dynamic development of the Azerbaijani economy despite the ongoing global crisis, according to the State Statistics Committee.
Arif Valiyev, the Committee chairman, told a press conference on Friday that the income and wages of citizens, which define the population`s living standards, are on an upward trend amid an overall slowdown of the world economy.
According to Valiyev, oil production in the resource-rich South Caucasus republic went down 2.1%, in comparison with Q1 of 2008, due to sliding world crude prices. However, 13.7% growth achieved in the non-oil sector led to a 4.1% overall increase in the country`s Gross Domestic Product (GDP). Per capita GDP rose 2.9% to reach 782 manats, or $971.50.
The amount of citizens` bank deposits is on the increase as well. The figure rose 16% in January-February 2009 compared to the same period last year, Valiyev said.
As of March 1, deposits of Azerbaijani citizens totaled 1.8bn manats ($2.25bn). Bank savings in the national currency increased 12% to exceed 816m manats ($1.02bn), while those in foreign currencies rose 19.5% to $1.246bn.
Of note, the allocations of bank loans in Azerbaijan increased 39.1% in the first two months of 2009 compared to January-February 2008. Local banks disbursed loans worth 6.7bn manats ($8.375bn) during this period.

Prices on downward trend
Deflation observed in Azerbaijan in January-February 2009 continued in March, the State Statistics Committee chairman said.
Valiyev said domestic prices went down by 0.7% last month. Food prices decreased by 1.1%, while those for other goods - 0.1%. Fees on services remained the same as in February.
At the same time, the Committee chairman noted that prices for consumer goods increased 8.3% in the first quarter of 2009 in comparison with last year`s Q1.
According to Valiyev, the trend of falling prices is continuing in April. If the trend persists, inflation will make up only 2-3% in the country in 2009, a many-fold decrease compared to previous years. "However, since prices are unstable, it is difficult to make an accurate projection about that."
Inflation constituted 20.8% in Azerbaijan in 2008.
The International Monetary Fund (IMF) has predicted inflation in the country at 4% in 2009, in its regular report on economic development around the world. The figure would make the South Caucasus republic one of the countries where prices fell the most.
In 2010, the IMF forecasts Azerbaijan`s inflation at 7%.