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Azerbaijan manages to mitigate impacts of external economic impulses

21 June 2016 16:44 (UTC+04:00)
Azerbaijan manages to mitigate impacts of external economic impulses

By Nigar Abbasova

The global and regional processes that occurred in the world economy in 2015 had only a slight impact on Azerbaijan, Natig Amirov, Azerbaijani presidential aide on economic reforms said.

He made the remarks during “Social business – way for development” conference.

Amirov underlined that the minimal impact of the processes is the result of the country’s policy and measures taken for the development of non-oil sector of economy.

“Drop in oil prices, devaluation of the national currencies of Azerbaijan and its primary trade partners as well as other economic and political processes that occurred in the world has influenced Azerbaijan. Economic reforms implemented in the country that have a logical and strong basis as well as measures taken for the development of the non-oil industry have minimized the negative impact,” he added.

He said that the increase of the country’s GDP by 1.1 percent in the last year as well as the fact that the volume of GDP per capita amounted to 5,703 manats ($3,767) are good examples in this regards.

As much as 15.9 billion manats ($10.4) have been invested in the basic capital of the country while the share of domestic investments in the capital amounted to 56 percent.

He mentioned that the current situation in the world market stipulates expanding and accelerating the implemented reforms.

He also added that the national currency will gradually acquire its fundamental value. Amirov underlined that the devaluation of the national currency was inevitable taking into account negative developments ongoing in the world economy then.

“Negative impact of processes that occurred in the world financial markets necessitated devaluation of the national currency with a view of preserving competitiveness of the country’s non-oil industry,” he said.

“Purposeful measures taken in the monetary market of the country has considerably stabilized the national currency,” he stated.

Main directions of the strategic “road map” of the national economy as well as priority sectors of the economy have been set by the president.

The main objective of the road map is to ensure sustainable economic growth, correctly define the development strategies for auxiliary sectors that contribute to creating the economy’s leading sectors and the necessary economic infrastructure.

Special working group headed by Natig Amirov is engaged in drawing up a plan in accordance with the main directions of the road map. Strategy project on the economic improvement for 2016-2020 is expected to be prepared by mid-September, 2016.

Azerbaijani Deputy Foreign Minister and rector of ADA University Hafiz Pashayev, addressing the conference held in ADA University mentioned that low oil prices have a positive impact on the implementation of economic reforms in Azerbaijan.

He underlined that the country’s economy currently experiences an important stage as income from the oil sector decreases. “Oil prices may provide support for the implementation of economic reforms should they remain at the same level,” he said.

Pashayev underlined that certain commissions have already been created in the country to stipulate implementation of economic reforms.

Azerbaijan’s GDP has grown by 3.2 times over the past ten years. The non-oil sector has grown by 2.6 times, industrial production by 2.7 times, agriculture by 1.5 times, and investments by 6.5 times.

The Central Bank of Azerbaijan acquired $1.19 billion cash fund in January-April 2016, which is 5.4 times lower than the amount purchased in 2015.

The volume of operations held in currency exchange exceeded $1.2 billion in that period. The growth amounted to 20 percent as compared to the rates shown in the same period of 2015.

The CBA switched to the floating rate of manat on December 21, 2015.

Official exchange rate of the U.S. dollar and euro to Azerbaijani manat was set at 1.5240 manats and 1.7273 manats, respectively on June 21.


Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

Follow us on Twitter @AzerNewsAz

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