Azernews.Az

He told a cabinet meeting dedicated to the country's socio-economic development in the first nine months of 2007 and tasks facing the government that positive growth dynamics observed in the country's development continued in January-September and the economic reforms carried out were very successful. Rampant development continued in Azerbaijan in the mentioned period, with both overall economic growth and increase in industrial output amounting to 27%.
Aliyev said the income of citizens has risen some 40% this year. "The living standards are improving in Azerbaijan, while the number of the poor dropping."
The president emphasized that the country's currency reserves currently amount to $6.3 billion.
"This is a huge figure, which allows us to make sure that in case of potential undesirable developments in the world or an economic crisis, this would not affect Azerbaijan," he said.
Aliyev reminded that the budget spending in 2008 will amount to $10 billion.
He voiced concern over the current level of inflation, which stands at 16%. The increase in food prices makes up 15%.
"We are certainly very concerned over this, and we will be working to lower the figure as much as we can," the head of state pledged.
He said there were quite a few objective reasons for inflationary increases. The rising prices for crude in world markets as well as on goods imported to the country cause inflation.
For comparison's sake, Aliyev said that overall, prices are rapidly rising in all CIS states. In some of these countries, food prices have gone up 40-50% in the past few months.
Aliyev said there were subjective reasons for price rallies as well, such as monopolies and unhealthy competition, and vowed that such developments would be prevented.

Defense spending
Azerbaijan's defense spending will reach $1.3 billion in 2008, President Aliyev told the government meeting.
Military expenditure amounted to $1 billion in this year's budget. Aliyev said Azerbaijan should continue to bolster its military potential, as Armenian occupying forces take "an insincere position" in peace talks.
"No one can force us to back down from that. This is our sovereign right," the head of state said.
The president said Azerbaijan would further seek to increase the combat readiness of its army, procure weapons and establish its defense industry complex.