Media Review - 12/22/2018

Estimates of the results of the second Congress of students, an expert view on 2019, a fall in oil prices, and other issues are the focus of today's media.

The website of the ruling party New Azerbaijan, YAPaz.org gives comments of the second Congress of the students of Azerbaijan from a Member of the Parliament Dilara Jabrailova.

According to her, "valuable thoughts about the success of state policy in the field of youth and education" were heard at the Congress. She believes that all opportunities for youth have been created in the country. Thousands of young people at state expense have received education in leading universities of the world.

The MP also points to the policy of the state to transform the country's natural wealth into human capital.

The newspaper Yeni Musavat in the article "Why society is afraid of 2019" provides comments from the economist Natig Jafarli on the results of 2018 and his forecasts for 2019.

However, he notes that the amendments made to the Tax Code in 2018 will affect the situation of the population in 2019. According to him, the innovations will benefit about 500 thousand people who will be exempt from income tax. At the same time, for employers, payments for compulsory social insurance payments will be reduced from 25% to 15%.

However, along with positive innovations, there are measures to tighten, and in particular to increase financial sanctions for a number of violations. In addition, changes in tax legislation may, from 2019, lead to a rise in prices in several areas. In connection with the sharp increase in the excise tax rate, the prices of cars, tobacco products, and alcohol will rise significantly.

He also expects a rise in prices for consumer goods, which especially hits the population. In particular, in his opinion, diesel fuel can become more expensive, since today there is a sharp difference between the price of this oil product and AI-92 gasoline. The cost of liters of these types of fuel is respectively 0.6 and 0.9 manat.

Jafarli does not exclude the rise in prices for public transport. He draws attention to the statement by the management of Baku Subway that the price of travel in the subway is less than its cost price.

In addition, the excise tax on imported buses will increase, which will increase the cost of travel on them.

Jafarli also predicts an increase in prices for some food products, which is caused by the restriction in the market for products of local agricultural producers in the winter season.

The Bakupost.az website reflects on the possible consequences of falling oil prices on the manat rate.

The expert Rovshan Agayev believes that lowering oil prices to $ 50 per barrel will create risks for the stability of the manat.

According to him, this is due not so much to the collapse of oil prices as such, but a large amount of obligations to repay foreign debts, taken under state guarantees.

At the same time, he believes the CBA should not rely on curbing inflation and reduce the money supply. The goal should be economic growth, the expert believes.

In fact, he says, 1% of economic growth projected for 2019 is not enough. To increase the economy, growth should be 3-5% per year. -0-

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