AZPROMO head: Azerbaijan able to withstand challenge of falling oil prices

12 March 2020 17:25 (UTC+04:00)

By Trend

Today, the stability and immunity of the Azerbaijani economy is much stronger than in 2014-2015, Yusif Abdullayev, acting president at the Azerbaijan Export and Investment Promotion Foundation (AZPROMO) under the Azerbaijani Ministry of Economy, told Trend.

“As is known, the countries that are united in the OPEC + format, could not reach a consensus on oil production for some reasons at the meeting in Vienna,” acting president said. “Some countries plan to lift certain restrictions on oil production from April 2020.”

“This fact played a negative role and the price of oil in all world markets greatly dropped,” Abdullayev said. “Of course, our country, which is one of the main exporters of oil in the region, was also affected."

“At this stage, the country has sufficient resources to withstand the challenges of the decline in oil prices,” the acting president said. “The financial 'airbag' which was created in the previous years is a good stabilizer and the basis for taking the necessary measures and further steps in this sphere.”

“From 2014 through 2020, huge reforms were carried out in all spheres of the economy,” Abdullayev said. “In this format, we, as a country, are absolutely ready for the challenges that we may face.”

“From January through February 2020, non-oil GDP increased by 6.7 percent and the total GDP increased by 2.8 percent, which is a good indicator, taking into account the ongoing processes in the world markets,” acting president said. “The inflation rate is 2.8 percent, which is also a positive indicator."

Touching upon the foreign exchange reserves of Azerbaijan, Abdullayev stressed that the reserves reach $52 billion, which exceeds eight percent of the country's GDP.

“This is a very good indicator at the world level, which creates a financial 'airbag' for Azerbaijan and allows taking the necessary package of preventive measures to stabilize the situation in the market, if necessary,” the acting president said.

“Amid the difficulties in the world markets in connection with the energy resources, some groups may speculate on the price hike,” acting president said. “The government thoroughly controls the consumer market for certain groups not to speculate on price hike in the consumer market. This is an important indicator for maintaining stability in the market."

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