Gov`t reports on 2008 activity
The Azerbaijani government submitted reports on
Friday detailing year-end outcomes for 2008 to parliament, citing
ongoing economic growth and improving living standards for
citizens.
Presenting the summary, First Deputy Prime Minister Yagub Eyyubov said the Gross Domestic Product (GDP) grew 10.8 percent to reach 38 billion manats ($47 billion) in Azerbaijan last year. The growth was achieved due to the diversification of the national economy and reduction in its dependence on the oil sector.
Eyyubov said, further, that solving social problems facing Azerbaijani citizens was one of the priorities for the government throughout 2008. As a result of these endeavors, the average monthly wage in the country reached 268 manats ($330), while the average pension is 96 manats ($120). Overall, salaries have been increased for people employed in all sectors of the national economy and citizens` incomes rose 36 percent. In addition to that, the number of citizens receiving state support has grown considerably to exceed 700,000 in the nation of over eight-million people.
Furthermore, the government pursued policies to reduce poverty as one of the key targets of economic development in 2008. The poverty rate dwindled 3.4 times to 13.2 percent due to the successful implementation of a relevant state program, which was launched in 2003.
The deputy prime minister went on to say that a new state program has been established to continue slashing poverty through 2015. This program also seeks to reduce the poverty level in Azerbaijan to match that of the world`s developed nations.
With regard to the state budget issue, Eyyubov stressed that it has grown more than 10-fold in the past five years. Whereas the budget constituted only $1.2 billion in 2003, that figure grew to $13 billion in 2008.
Eyyubov said that despite the world financial crisis, Azerbaijan`s banking sector continued to develop in 2008. The assets of local banks increased 53 percent, and bank capital rose 47.8 percent. Also, a 29.6 percent growth was seen in bank deposits by the population.
Eyyubov noted that Azerbaijan`s currency reserves, which are formed on account of the funds of the central bank and the State Oil Fund, the body that holds the country`s oil revenues, topped $18 billion as of the end of 2008. The country made a profit totaling $412 million from the management of these reserves last year.
According to the submitted estimate, Azerbaijan`s oil production increased 2.9 times, while gas output more than tripled in 2008.
Some opposition lawmakers claimed that the report was essentially the same as earlier reports, with the only difference being its submission not by Prime Minister Artur Rasizada, but by his first deputy.
Nasib Nasibli, an MP from the opposition Musavat party, criticized the government for what he called concealing facts related to the impact of the world crisis on the Azerbaijani economy. He maintained that the report was a mere repetition of the ones submitted before, notwithstanding the fact that the global economy has undergone considerable changes in past years and countries around the world faced a financial crisis.
Nasibli said a number of factors -- the alleged halt of large-scale projects, serious challenges encountered by even small enterprises and the government`s hefty currency spending aiming to artificially keep the national currency rate robust -- actually indicated that the Azerbaijani economy is mired in a crisis.
Nasibli pointed to the dependence on oil revenues as the main challenge for the national economy. Another problem is increasing corruption and continuing monopolistic practices, he said.
Mubariz Gurbanly, deputy executive secretary of the ruling New Azerbaijan Party (NAP), brushed off the criticism, saying the opposition was trying to discredit the government`s policy.
"But they can provide only a subjective assessment to the government`s record while the objective one is given by the voters. The difference between the views of the population and the opposition is large."
Most of the MPs backing the government`s report stressed that the economic crisis that has sent shock waves to economies worldwide has had little or no impact on Azerbaijan.
The parliament adopted the report after the discussions.
Presenting the summary, First Deputy Prime Minister Yagub Eyyubov said the Gross Domestic Product (GDP) grew 10.8 percent to reach 38 billion manats ($47 billion) in Azerbaijan last year. The growth was achieved due to the diversification of the national economy and reduction in its dependence on the oil sector.
Eyyubov said, further, that solving social problems facing Azerbaijani citizens was one of the priorities for the government throughout 2008. As a result of these endeavors, the average monthly wage in the country reached 268 manats ($330), while the average pension is 96 manats ($120). Overall, salaries have been increased for people employed in all sectors of the national economy and citizens` incomes rose 36 percent. In addition to that, the number of citizens receiving state support has grown considerably to exceed 700,000 in the nation of over eight-million people.
Furthermore, the government pursued policies to reduce poverty as one of the key targets of economic development in 2008. The poverty rate dwindled 3.4 times to 13.2 percent due to the successful implementation of a relevant state program, which was launched in 2003.
The deputy prime minister went on to say that a new state program has been established to continue slashing poverty through 2015. This program also seeks to reduce the poverty level in Azerbaijan to match that of the world`s developed nations.
With regard to the state budget issue, Eyyubov stressed that it has grown more than 10-fold in the past five years. Whereas the budget constituted only $1.2 billion in 2003, that figure grew to $13 billion in 2008.
Eyyubov said that despite the world financial crisis, Azerbaijan`s banking sector continued to develop in 2008. The assets of local banks increased 53 percent, and bank capital rose 47.8 percent. Also, a 29.6 percent growth was seen in bank deposits by the population.
Eyyubov noted that Azerbaijan`s currency reserves, which are formed on account of the funds of the central bank and the State Oil Fund, the body that holds the country`s oil revenues, topped $18 billion as of the end of 2008. The country made a profit totaling $412 million from the management of these reserves last year.
According to the submitted estimate, Azerbaijan`s oil production increased 2.9 times, while gas output more than tripled in 2008.
Some opposition lawmakers claimed that the report was essentially the same as earlier reports, with the only difference being its submission not by Prime Minister Artur Rasizada, but by his first deputy.
Nasib Nasibli, an MP from the opposition Musavat party, criticized the government for what he called concealing facts related to the impact of the world crisis on the Azerbaijani economy. He maintained that the report was a mere repetition of the ones submitted before, notwithstanding the fact that the global economy has undergone considerable changes in past years and countries around the world faced a financial crisis.
Nasibli said a number of factors -- the alleged halt of large-scale projects, serious challenges encountered by even small enterprises and the government`s hefty currency spending aiming to artificially keep the national currency rate robust -- actually indicated that the Azerbaijani economy is mired in a crisis.
Nasibli pointed to the dependence on oil revenues as the main challenge for the national economy. Another problem is increasing corruption and continuing monopolistic practices, he said.
Mubariz Gurbanly, deputy executive secretary of the ruling New Azerbaijan Party (NAP), brushed off the criticism, saying the opposition was trying to discredit the government`s policy.
"But they can provide only a subjective assessment to the government`s record while the objective one is given by the voters. The difference between the views of the population and the opposition is large."
Most of the MPs backing the government`s report stressed that the economic crisis that has sent shock waves to economies worldwide has had little or no impact on Azerbaijan.
The parliament adopted the report after the discussions.
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