Azerbaijan, like other countries of the South Caucasus and the European part of the CIS this year is experiencing economic decline on the background of dependence on trade with Russia.
According to the World Bank report "Low commodity prices and weak currencies," the negative is associated with lower oil prices, the decline in remittances and the volume of trade transactions. As a result, at the end of 2015 the pace of growth in these countries will be at 50% against last year. With the reduction in business activity the output will decline by 0.9%. However, the most significant drop is precisely in Russia (minus 3.8%).
In the oil exporting countries (Azerbaijan, Kazakhstan and Russia) and the countries receiving remittances from abroad (Armenia, Tajikistan) poor households suffer most of all. The reason is the increase in import prices caused by the depreciation of the national currency, and the reduction of jobs outside the budget, trade and services sector.
To gain competitiveness in world markets for these countries it is necessary to adjust exchange rates, coupled with prudent monetary policy designed to keep domestic inflation under control. In addition, not verbal, but real reforms should be activated. --17D-
Economics
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In a strategic move to bolster mechanisms against financial crimes and terrorism financing, Azerbaijan's Deputy Prime Minister, Samir Sharifov, has been appointed as the head of the newly restructured Coordinating Council on Counter-Terrorism Financing and Other Financial Crimes.
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The Chairman of Azerbaijan Railways CJSC, Rovshan Rustamov, and the head of Iranian Railways, Jabbar Ali Zakeri Sardrudi, convened in Tehran during the Joint Azerbaijani–Iranian Intergovernmental Commission meeting to bolster cooperation on the Astara terminals, key nodes in the International North-South Transport Corridor (INSTC). The talks centered on enhancing the operational efficiency and strategic significance of these terminals to facilitate growing cargo volumes between the two nations.
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Azerbaijan is accelerating its transition to green energy through the coordinated efforts of its "Green Energy Zone" task force, which recently held its latest hybrid meeting to review progress and outline future priorities. The Ministry of Energy, reporting on Wednesday’s session, emphasized the task force's central role in implementing the 2022–2026 Socio-Economic Development Strategy, a cornerstone of Azerbaijan’s ambitions for sustainable growth.
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AzerGold, Azerbaijan’s state-owned mining company, is pursuing opportunities for strategic collaboration with Turkish firms in Africa as part of its efforts to expand its presence in the global mining sector. Recent talks between Zakir Ibrahimov, Chairman of the Board of AzerGold CJSC, and Şebnem Cenk, Head of the West and Central Africa Department at Turkey's Ministry of Foreign Affairs, highlighted the potential for a mutually beneficial partnership.
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