Azernews.Az

By Gulgiz Dadashova

Azerbaijan's recently adopted Development Strategy 2020 aims to double growth in GDP per capita, mainly through expanding the non-oil sector, which is expected to grow at least 7 percent annually.

The need for such a development concept is explained by the fact that the country is entering a new phase in its development.

Deputy Chairman of the Central Bank of Azerbaijan (CBA) Khagani Abdullayev believes that Azerbaijan needs to enter overseas markets with a view to ensure the serious increase in GDP in the medium term.

"Azerbaijan's economy has shown impressive growth over recent years, but the country is facing the challenge of doubling the GDP in next 10 years. To this end, we are taking measures to diversify the economy, we strive to effectively balance between the private and public sectors. To achieve this goal it is necessary to achieve rapid growth of the non-oil exports. The country's foreign policy plays a big role here. Azerbaijan is a small country with a limited domestic market, so we need to enter overseas markets," Abdullayev said.

The key strategic vision of the concept is to take into consideration the existing opportunities and resources to achieve sustainable economic growth and social prosperity in Azerbaijan, ensure effective state governance, rule of law and complete exercise of all human rights and freedoms, and reach a development stage characterized with an active status of civil society in the country's public life.

Abdullayev said that such a development may be achieved through innovations and investments.

"The country's regions have great human resources, and the capital is concentrated in Baku. It is necessary to transform our resources into human capital through innovation," Abdullayev said.

The diversifying of the economy by encouraging innovation and expanding advanced technical facilities will enable a shift toward knowledge-based industries, which in turn may stimulate additional investments in human capital and capacity building.

Forecasts of the WB, the EBRD and the UN show that economic growth in the country this year will be at around 3.5 percent.

Meanwhile, the state forecast on GDP growth rate in 2013 is at 5.3 percent, and the total volume of Azerbaijan's GDP is expected to reach $71 billion, with 55 percent of the growth to be provided by the non-oil economy.

The country recorded a 9.7 percent growth rate in the non-oil sector and its share in GDP reached 52.7 percent in 2012.

According to the country's statistics committee, Azerbaijan's GDP grew 3.1 percent in the first quarter of 2013 compared to the same period of 2012 and amounted to 12.947 billion manats.