Analyst predicts ‘socio-economic tension’ in Azerbaijan
Tensions are expected in Azerbaijan’s socio-economic life in 2010,
a local analyst predicts.
According to Rovshan Aghayev, deputy head of the Assistance to Economic Initiatives public union, worries about inflation have appeared amidst the public, which signals an anticipated increase in domestic prices. Aghayev believes that if the state-regulated prices are raised, this could cause severe social tension in the country.
According to the analyst, the government has no plans to raise the wages of budget-funded organizations’ employees, pensions or other social allowances next year. On the other hand, a reduction in budgetary spending will limit road and social infrastructure construction, while the people’s decreased purchasing power will restrict construction of housing. In some cases, this could lead to social upheaval, Aghayev concluded.
He went on to say that research enables a conclusion that 2010 will see worsening of the situation in the domestic real estate market and the banking sector. In particular, Aghayev says a decrease in property prices, a reduced role of local banks in economy, especially in lending to the private sector, and an increase in the amount of overdue loans appears quite likely.*
According to Rovshan Aghayev, deputy head of the Assistance to Economic Initiatives public union, worries about inflation have appeared amidst the public, which signals an anticipated increase in domestic prices. Aghayev believes that if the state-regulated prices are raised, this could cause severe social tension in the country.
According to the analyst, the government has no plans to raise the wages of budget-funded organizations’ employees, pensions or other social allowances next year. On the other hand, a reduction in budgetary spending will limit road and social infrastructure construction, while the people’s decreased purchasing power will restrict construction of housing. In some cases, this could lead to social upheaval, Aghayev concluded.
He went on to say that research enables a conclusion that 2010 will see worsening of the situation in the domestic real estate market and the banking sector. In particular, Aghayev says a decrease in property prices, a reduced role of local banks in economy, especially in lending to the private sector, and an increase in the amount of overdue loans appears quite likely.*
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