“Entrepreneurship in Azerbaijan more than at one-third does not recognize documentation and is based on cash payment. According to the World Bank, only 65% of businesses (mostly individuals) have bank accounts, which is a serious problem in terms of tax revenue.
As stated at the traditional IV forum "Tax system in Azerbaijan: realities and prospects" by the head of the local representation of WB Larisa Leshchenko, the World Bank is ready to assist Azerbaijan in solving this problem. According to her, a low level of non-cash payments is a serious problem for the country because the government should take serious measures in the promotion of non-cash payments, in particular to promote business, as well as informing the public.
"In the US, where I used to live, everyone enjoys payment cards, and I returned to Baku at the time when they do not use non-cash payments," said the expert, adding that the challenges currently facing the economy the country are caused by the decline in oil prices and other global processes. They are not one-day and continue in the medium term," said Leshchenko.
According to her, the World Bank predicts the average price of oil at $ 53 per barrel in 2015, $ 57 - in 2016. "In these conditions it is important to develop new programs, a new economic model in Azerbaijan and the World Bank will help in the local government," she added .-- 17D-
Economics
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Azerbaijan's financial standing continues to strengthen as the country's foreign currency reserves have surged to $71 billion as of January 1, 2025, according to the Ministry of Finance. This figure, which includes reserves held by the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA), far exceeds the nation's external debt, which stands at a fraction of its reserves, specifically nearly 14 times less. This robust reserve position reflects Azerbaijan's fiscal stability and the government’s strategic economic management.
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According to operational data from the Ministry of Energy of Azerbaijan, in January 2025, the country produced 2.3 million tons of oil, including condensate, and 3.9 billion cubic meters of gas.
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The State Oil Company of Azerbaijan (SOCAR) has opened a representative office in Albania and is set to launch a specific project this year, the Albanian company "Albgaz" announced.
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"Azerbaijan is currently among 54 middle-income countries," said Shahmar Movsumov, head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, during the presentation of the World Bank’s World Development Report 2024 in Baku on February 10.
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