The International Monetary Fund recommends the execution of the state budget for the current plan and the budget for the next year at the rate of world oil prices at $ 50 per barrel. According to the largest financial institution, it will limit the reduction in the assets of the State Oil Fund (SOFAZ), reduce the risk of increasing inflation following the February devaluation, bring public investment to a more sustainable level, and enhance the effectiveness of the projects implemented by the government.
The IMF mission noted the need to enhance confidence in the medium-term strategy for fiscal consolidation. It believes that the February devaluation helped restore relative competitiveness, but should maintain reserves and not ignore the trust of the private sector.
IMF is for the "floating" rate of the manat and for gradual transition to greater exchange rate flexibility. It recommends to invest more private investment, which will help mitigate the adverse effects of short-term fiscal consolidation. The same also needs reform management, reducing the cost of doing business and the removal of barriers to competition, including the costly customs procedures.
Furthermore, the efficiency of the government should be improved, the efforts to combat corruption should be expanded and the rule of law and independence of the judiciary should be strengthened. --17D-
Economics
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In Baku, grappling with growing environmental challenges, experts and policymakers convened on Friday for an international scientific conference titled “Sustainable Environment: Transition to Green Energy.” The event highlighted the urgent need for innovative strategies to combat pollution and advance renewable energy initiatives.
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Kazakhstan is set to increase its oil transit through the Baku-Tbilisi-Ceyhan (BTC) pipeline by 5.1% in 2024, reflecting growing regional cooperation and diversification in energy routes. According to figures obtained by Turan News Agency, the total volume of Kazakh oil transiting through the BTC pipeline is projected to exceed 1.464 million tons, up from 1.392 million tons in 2023.
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In a groundbreaking development for Azerbaijan’s energy sector, GL Group, a prominent Azerbaijani oil company, has announced plans to drill the country’s first horizontal well on land, reaching a depth of 4,400 meters with a lateral section of approximately 400 meters. The project, a milestone in the region’s oil exploration history, is set to take place at the Kirsangi-Garabaghly onshore fields.
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The Central Bank of Azerbaijan (CBA) forecasts an annual inflation rate of 5.1% by the end of 2024, comfortably within the target range of 4% ± 2%. However, recent data indicate that inflationary pressure has significantly eased over the year: in October, the inflation rate stood at 3.4%, slightly down from 3.5% in September. Official data for November have not yet been released, leaving room for speculation about possible year-end adjustments.
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