Azernews.Az

International Monetary Fund (IMF) sees a great potential in the development of private non-oil sector of Azerbaijan, the head of IMF mission in the country, deputy director of the Middle East and Central Asia Department Nadeem Ilahi said at a press conference in Baku on Tuesday.

The IMF mission is in Baku from October 20 to November 2 to conduct consultations under Article IV of the Agreement on the IMF Establishment together with the Azerbaijani government. The consultations are held on a regular basis annually.

Head of IMF mission noted the high potential of Azerbaijan in spheres such as agriculture, transport and communications.

According to Ilahi, this year the growth in non-oil sector of the economy is expected to reach about nine percent compared with 7.5 percent last year, and in 2012 the growth rate could make up 6 percent.

"Because of technical reasons, in 2011 there was a sharp decline in oil production in Azerbaijan. It is expected that over the next decade, production of hydrocarbons in general will remain at the same level [posted before the decline] and then begin to reduce," he said.

Recently, the rate of inflation has decreased in Azerbaijan in the backdrop of slowdown in growth in world food prices. It is expected that by the end of 2011 the inflation will be around eight percent, Ilahi said.

"The main challenges ahead are to keep inflation at a low level, maintain financial stability and change the nature of economic growth by reducing dependence on oil and transition to growth, based on self-sustaining of the private sector," said Ilahi.

As a result of this visit, the mission will prepare a report, which will be voted in mid-January, and the next visit of the mission to Azerbaijan take place in April-May next year.