IMF: Country has opportunities to increase private investment
By Abdul Kerimkhanov
International Monetary Fund (IMF) has published a report titled “Promoting Inclusive Growth in the Caucasus and Central Asia (CCA)”, which generally reflects positive impressions from Azerbaijan’s economy.
There are opportunities in Azerbaijan to increase private investment, which will allow for more inclusive growth, IMF noted.
The reports says that CCA countries tend to have higher capital expenditures and lower current expenditures. IMF estimates that there are more opportunities for higher economic efficiency in Azerbaijan, Kazakhstan, Turkmenistan and Uzbekistan.
IMF also stated that the Azerbaijani authorities have taken a number of steps to improve the business environment.
Such measures include strengthening the legal rights of borrowers and lenders (through the introduction of a functional and secure transaction system); easing the tax burden (through the improvement of the electronic tax system); facilitating access to credit information (Azerbaijan has established a single collateral registry for movable property and expanded the range of movable assets eligible for collateral).
IMF noted that Azerbaijan has the potential to increase GDP, including through the development of the agro-industrial sector.
"The agricultural sector in Azerbaijan is the largest employer, providing work to about 37 percent of the workforce, but its share in GDP is only five percent. The mining sector, on the other hand, provides 40 percent of GDP, but it employs only one percent of the population," the report says.
The Fund's analysts also noted a significant level of subsidizing the economy in Azerbaijan.
The IMF is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
The IMF's primary purpose is to ensure the stability of the international monetary system - the system of exchange rates and international payments that enables countries and their citizens to transact with each other.
Azerbaijan joined the Fund on September 18, 1992.
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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
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