Azernews.Az

BAKU – President Ilham Aliyev has expressed concern that soaring world crude prices could increase inflation risks in Azerbaijan, saying the government should step up effort to counter price rises in the domestic market.

The International Monetary Fund (IMF) has said in its revised forecast that inflation will be 10.3 pct in Azerbaijan in 2011, up from 5 pct it predicted earlier.

Addressing a quarterly government meeting on Tuesday, President Aliyev also praised Azerbaijan’s economic performance in January-March 2011.

Aliyev said resource-rich Azerbaijan posted growth in its non-oil sector, noting that the country’s key goal is to boost this sector and reduce its reliance on oil and gas revenues.

Industrial production increased 0.3 percent in the first three months of 2011, fueled by the 9.8 percent increase in the non-oil sector, he told the government meeting, which was broadcast on the state television channel AzTV.

Aliyev said the South Caucasus republic’s oil production is surging, and gas output will increase in the coming years as well.

The president noted that Azerbaijan’s currency reserves have reached $34.7 billion, and their growth is expected to continue until the end of 2011.

"All this is happening amid the implementation of large-scale investment projects in Azerbaijan, which is an indicator of our country’s economic and financial strength."

Aliyev said in conclusion that the government’s stepped up combat against corruption and bribery is yielding fruit, and the Azerbaijani people welcome these measures.

He said consumer prices in the country are under control, stressing the importance of stepping up efforts to counter the spread of monopolies both in domestic production and imports.