Private sector not driving force of growth in Azerbaijan, IMF official says
Azerbaijan's economy is developing now, largely under the influence of government spending, which makes the economy heavily dependent on them, the International Monetary Fund (IMF) mission chief for Azerbaijan Raja Almarzoqi said at a press conference on Tuesday.
An IMF staff mission visited Azerbaijan from November 8 until November 20.
"For example, the construction and services fields are developing, mainly due to government spending. Although there is some improvement in the business climate in Azerbaijan, it is not enough for the private sector to be the engine of economic growth," Almarzoqi said.
In addition, he said, there is a need to develop the banking sector and the capital markets in order to make them the engines of economic growth.
"Deep structural reforms will be crucial for the development of a competitive economy which will not be connected with oil and which will be led by the private sector. It will be able to boost exports, create jobs and support the diversification. New Customs Code, the completion of the WTO accession and reduction of barriers to trade will be important prerequisites for the development of a new growth strategy for reducing dependence on oil," Almarzoqi said.