European Bank for Reconstruction and Development (EBRD) said that the risks for Azerbaijan related to the high dependence on oil, have become obvious during the global financial crisis.
In the economic report released by the Bank on July 25, there is a recommendation on strengthening of Azerbaijan's economic diversification to reduce the impact of the crisis.
The report says that economic growth has slowed, along with a reduction in the rate of oil production, what have been only partially compensated by the non-oil sphere, and was stimulated by the public expenditure.
The EBRD has corrected the forecast of economic growth in 2012, reducing it from 3.5% to 2.5%. At the end of next year, the bank predicts the economy within 3%.
Last year was most unfavorable for Azerbaijan, where GDP growth was only 0.1%. Experts believe that Azerbaijan’s very strong financial position continues to soften unexpected macroeconomic risks.
Economics
-
On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
-
Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
-
Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
-
Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
Leave a review