Media Review December 21, 2019

The development of the private sector, the reasons for the price increase on New Year's Eve, the new tax system in the construction sector are the topics of today's media.

The newspaper Azerbaijan writes about the development of the private sector, which is facilitated by the ongoing reforms in the country, as well as investments in the non-oil sector. It is the result of the creation of 9 industrial parks and quarters in the country that products worth 1.5 billion manats were produced.

Out of 51 agricultural parks, 22 actually operate in the country, by the end of the year another 11 agricultural parks will come into effect. In January-October this year, 11 billion 407.4 million manats were invested in the development of the economic and social spheres. Of the total investment, 48.9% belong to the state, and 51.1% to the non-state sector.

The website Modern.az writes about the increase in prices on New Year's Eve for food - by 1.5-3%. Often supermarkets under the guise of discounts sell expired goods.

Some economists associate the rise in price with supply and demand, but this is not entirely true.

If inflation is 10%, then only 2-2.7% are associated with problems in the country's economy. The remaining 6-7% is the result of artificial price increases. Today, the average budget for holiday purchases of a family of 4 is 150-200 manat.

The website Sfera.az writes about the rise in price of housing, which is associated with the new tax system in the construction sector. Thus, a simplified tax will be eliminated from January 1, 2020, but VAT and income tax will be paid. This will affect the cost and companies raise prices.