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IMF: Economic growth in Azerbaijan will exceed 6% this year

15 February 2011 15:10 (UTC +04:00)

The basis for this is the resumption of growth in the construction, trade and services sphere", said the head of the IMF mission on Azerbaijan, Nadeem Ilahi, gave the figures at a press conference in Baku today

According to Ilahi, the prices had grown rapidly in 2010, mostly because of the growth in global food prices

"The prospects for 2011 are encouraging, although the growing inflation rates, which are expected to reach 10% by late 2011, do entail macroeconomic risks. The main job of the official bodies will be to restrict inflationary expectations, while the tax and budget policy must also be aimed at preventing excessive demand," Ilahi said.

He said that restrictions on spending in 2010 had led to a lower than expected deficit in the non-oil sector which had in turn helped to restrain inflation.