Press Review 10/23/2017

The course of reforms in the country, the high cost in the construction materials market, the reasons that impede the development of the economy are the leading topics of today's press.

The newspaper Azerbaijan writes about the new quality of reforms conducted in the country. In this regard, the author concentrates on the regional public discussions Economic Reforms in Azerbaijan: Achievements and Prospects that took place in Guba. Such discussions were also held in Agdam and Sheki, and they are planned to be held in Gandja, Shirvan, Lankaran and Mingechevir. The author also notes that the former President Heydar Aliyev gave the start to economic reforms, and the current President Ilham Aliyev is his worthy successor.

The newspaper Yeni Musavat writes that customs duties have caused fantastic prices in the construction materials market. The reason for the rise in price could not be devaluation, as for 9 months the manat is stable. Or at least, it turns out that the reasons are not quite this one. The author believes that a new construction boom is expected in Baku, since high-rise buildings will be built instead of demolished old buildings. The author narrates about the largest market of building materials in Baku - Darnagul, noting that there is a shortage of customers in the market, as more than two months there is an increase in prices for building materials. The author links this with the increase in customs duties. For example, the cost of 1 kg of nails is 1 manat 35 gapik. Customs appointed a duty for each kilogram in the amount of 10-15 gapik. The author gives the prices of building materials and duties imposed on them.

The newspaper Novoye Vremya published an article titled Oil Rate or Reform? According to calculations, the drop in the cost of crude oil on the world market by $ 5 could reduce the revenues of the Azerbaijani budget by 62.5 million manat. The change in prices for crude oil also affects the consolidated budget through the revenues of the State Oil Fund of Azerbaijan (SOFAZ). Reducing the price of crude oil by $ 5 could lead to a reduction in SOFAZ"s revenues by 794 million manat. Macroeconomic stability can only be achieved if all non-oil sectors of the economy are successful, plus the oil industry. The current trend of oil quotes positively affects the state"s revenues. So, it is possible to exclude the risks for macroeconomic stability in Azerbaijan through real economic reforms as opposed to the oil rate. No other option is possible.