Azerbaijan"s Economy in 2014: from Plus to Minus

The year 2014 in terms of socio-economic processes can be characterized as a continuation of the previous year and the establishment of the foundation of 2015.

The government led a rigid exchange rate and monetary policy, work continued on the creation of industrial and technology parks, and construction of international transport corridors. Attention was mainly focused on building sports facilities in preparation for the first European Games in Baku in June 2015.

It is expected that for 2014 the GDP growth will be 2%, inflation - 1.5%, and income growth - 3.5%. Due to the decline in world oil prices the industrial production fell by about 2%.

This year was the construction of two reservoirs in the Shabran and Shamkir regions, which cost the state several hundred million manat. There was restoration of the environmental situation in Lake Boyuk Shor in Baku, where there also was construction of sports facilities.

The government supports the project of building a new residential town White City, which partially covers the territory of the expandable seaside National Park. The area of industrial enterprises is also cleared at the expense of the state budget.

Plans for the commissioning of the Baku-Tbilisi-Kars railway were transferred to 2015. The next year is also expected commissioning of the new Baku sea port in the Alat settlement.

The system of calculation of plastic cards in public transport in Baku did not work, and the Ministry of Transport again promised to do so by March 2015. By that time, the city transport will receive at least 300 new buses, with the construction of several highways.

This year, the government has placed long-term bonds of $ 1 billion 250 million in international markets for the first time to raise funds to cover the state budget deficit.

The process of establishing a new set of state-ferrous metal plants in Dashkesan and Ganja has been accelerated. It is planned that the complex that includes the entire cycle of production of steel (iron ore mining, processing, production of pellets, steel and finished steel products) will enter fully into operation in 2018.

In general the structure and staffing of the economy department has not changed; reforms have been implemented only in the Ministry of Agriculture. The fight against corruption, control of public expenditure (state budget, the State Oil Fund) is estimated by local and international experts as ineffective. --08B-