Rate of GDP Growth in Azerbaijan Negative for First Time

In January of this year, the main macroeconomic indicator, Gross Domestic Product, went down. GDP production decreased compared to the same period in 2015 by 3.3%. Total GDP production was estimated at over 4 billion manats.

As the State Statistics Committee told Turan, from the time of stabilization of the economy since 1996, the rate of growth of GDP in Azerbaijan for the first time became negative.

However, members of the government constantly repeat the dynamic economic growth.

GDP per capita in January amounted to 418.3 manat or $ 264.5 and the same month in 2015 the production of GDP per capita amounted to 383.2 manat or $ 488.5. In dollar terms, the reduction was 45%.

Not only oil, but also non-oil GDP decreased (-3.7%). The share of non-oil GDP was 67.2% in January.

Independent experts note that the deterioration of macroeconomic indicators is not only a direct result of the fall in world prices for the main export product of Azerbaijan, but also the two-time devaluation of the manat in 2015. This resulted in the decrease in business activity and in the material welfare of the population.

The government has taken a number of measures to improve the investment activity in the country. However, this is not enough to overcome the crisis, according to experts, who also offer a political reform. -----08B