Chief Economist at WB Bank Europe and Central Asia: To Ensure Sustainability of Economy Reforms Should Be Done, and Not Imitated

Oil exporters in Eastern Europe are faced with many difficulties adjusting to low commodity prices. It is accompanied by a sharp fall in the real value of the local currency, the loss of jobs in the construction and service sectors in the domestic market, the depreciation of assets, the vulnerability of the financial sector, where part of the assets is US dollar terms, as well as the reduction of household income.

These are the main recommendations of the Chief Economist of the World Bank for Europe and Central Asia Hans Timmer regarding the risks against the backdrop of a weakening global economy and instability of international financial markets.

This also applies to the countries neighboring with Azerbaijan, as they have trade with oil exporters and the related amount is transferred to the homeland in earnings of migrant workers. Most of these countries are experiencing decline in the purchasing power of more than 10%, significantly higher than the level which follows from the reduction in their GDP," said the leading expert.

His recommendations are on the need to adjust exchange rates, coupled with prudent monetary policy designed to keep domestic inflation under control. The most important recommendation is to conduct and not to imitate reforms to ensure the sustainability of the economy. --17D-