
IMF Mission Head: ‘In 2016, Growth Rate of Azerbaijani Economy Will Be Negative’
In connection with the reduction of public funding, lending stagnation and the same volume of oil production it is expected that the growth rate of the economy of Azerbaijan will be negative in 2016, at -2.4 per cent, said the head of the IMF mission to Azerbaijan Mohammed El Korci.
According to Turan, quoting the official website of the IMF, El Korci noted that the average inflation rate was 4.1% in 2015, and it is expected to jump to 10% in 2016.
In his opinion, the main problem identified was the banking sector.
‘The devaluation and the recession hit the profitability of banks and exacerbated the problem of many bad debts. The authorities are now taking steps to address the problem of widespread non-performing loans, while a number of impractical banks are closed,’ said El Korci.
According to the head of the mission, the transition to a new economic model largely based on the growth of non-oil private sector will require an ambitious program of structural reforms.
‘It includes a variety of measures - from encouraging competition between companies and simplifying business start-up procedures and the rules of hiring and dismissal of employees to investment in human capital and education. Perhaps, in this case the most urgent task at the moment is quick and well-organized cleaning of the banking system, which will ensure the effective inflow of credit funds into the real economy,’ he said.
El Korci added that the IMF can assist in the first place through cooperation with the authorities in the creation of advanced macroeconomic institutions, frameworks and policies that are essential parts of the mentioned reforms. -------71D
Economics
-
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.
-
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.
-
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.
-
"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.
Leave a review