IMF: Azerbaijan non-oil sector growth could offset oil output loss
By Nigar Orujova
The International Monetary Fund (IMF) mission chief for Azerbaijan Raja Almarzoqi has said the country's non-oil sector growth rate could compensate the loss in oil production in 2013.
"The short-term country economy growth prospects are generally prosperous," Almarzoqi said. "Non-oil sector growth rate, mostly determined by government expenditure, could reach 8 percent in 2013 and plentifully compensate the anticipated loss in oil production volumes."
At the same time, Almarzoqi said, the non-oil GDP growth rate is expected to reach 10 percent by the end of 2012.
Almarzoqi said further, "Annual inflation declined lately, but could rise in 2013 because of the steady government expenditure and recent food price boost influence." Almarzoqi added that inflation is predicted to reach 3 percent by the end of this year.
An IMF staff mission visited Azerbaijan from November 8 until November 20.
According to the State Statistics Committee, the Azerbaijani non-oil industry increased by 6.8 per cent in January-October 2012, while the oil sector decreased by 5 percent.
Oil production in this period amounted to 36 million tons and that of natural gas - 14.4 billion cubic meters.
Growth in food production made up 7.6 percent. Sausage production increased by 2.5 percent to 1.7 million tons, while that of cooking oil - by 64.9 percent (53.4 tons), butter by 1.8 percent (19.4 tons), and margarine 23.3 percent (18,200 tons).