Azernews.Az

President Ilham Aliyev praised Azerbaijan's economic development in the first half of 2012 at a cabinet meeting on Wednesday, saying all economic objectives facing the country were fulfilled.

President Aliyev told the meeting, devoted to half-year results, that the country's Gross Domestic Product (GDP) increased 1.5 percent in January-June, with the non-oil sector growing 11.3 percent, the highest figure in the world economy, and said Azerbaijan will focus on boosting the non-oil economy in the coming years, the state television channel AzTV reported.

Aliyev said that despite a 3 pct decrease in Azerbaijan's industrial production due to a reduction in oil output, the fast-growing South Caucasus republic's non-oil sector industries grew 8.3 pct in this period.

"The macroeconomic situation in Azerbaijan is stable, while inflation made up 2.2 percent, with monetary incomes of the population growing 14.2 percent," he said. "In agriculture, a 10.4 percent growth was reported."

According to the president, Azerbaijan's strategic currency reserves currently amount to $44 billion, while the country's foreign debt is 7 pct of the GDP.

He said 46,000 jobs were opened in the six-month period, including 37,000 permanent positions.

Aliyev expressed confidence that the positive trend observed in the Azerbaijani economy will further enhance until the end of 2012. The president ordered to maintain the current inflation levels and the national currency manat's exchange rate, speed up economic reforms and improve the business climate in Azerbaijan.

Aliyev emphasized that it is necessary to put an end to baseless interference by government agencies with the work of businesses as well as to take measures to expedite the transition to the electronic system, set up new industrial parks and large farms and to transfer obsolete industrial facilities away from the center of the capital Baku.

Aliyev noted that next year's state budget will have an emphasis on social issues and investments.

Regarding Azerbaijan's conflict with Armenia over Nagorno Karabakh, he said there is a certain stalemate in peace talks and stressed the importance of altering the status quo.