Azernews.Az

BAKU – The World Bank (WB) predicts that in the medium-term outlook, Azerbaijan will become a net foreign investor, Minister of Economic Development Shahin Mustafayev said in an article published Friday in the official press.

"During 2010, the strategic currency reserves have grown by nearly 50 percent, reaching $29.1 billion, which is a strong guarantee for the sustainable development of the country," the minister said.

On the backdrop of ensuring the effective use of strategic reserves, the country has implemented a conservative strategy for external borrowing. According to the minister, total external debt of the country, including the borrowing by the private sector and public debt, amounts to $9.5 billion.

"The currency reserves are three times higher than this figure, and this is one of the main indicators of macroeconomic stability in the country in the context of the global crisis," the minister said.

He said Azerbaijan, recognized internationally in a new status, shifted from a group of low-income countries to the group of middle-income countries.

"The favorable investment climate in the country played an important role in attracting domestic and foreign investments," Mustafayev said. "And as a result, last year's investments in the country's economy grew by 19.2 percent, amounting to 12.4 billion manats, or $15.5 billion. At the same time, 7.5 billion manats or $9.3 billion in investments accounted for non-oil sector."