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Samir Sharifov: â€œThe world financial crisis will more distinctly impact on Azerbaijanâ€™s economy in 2009â€

17 January 2009 11:40 (UTC +04:00)

Despite that GDP reached two-digit rate, it was lower than forecasts because of economic rate down over the past tow months, said Sharifov.
The minister said problems created in the irregular and risky mortgage market of the United States in 2007 led the financial and real estate market to the bankruptcy and caused sharp financial crisis in the United States and then in the European and Asian countries last year. The world leading stock exchange indexes fell for 40 %, seriously damaging the developing countries indexes, which lost 50-75%. Prices have sharply receded in the world product market because of low requirements. The Azerbaijani minister of finance noted that oil price went down for four times, basic and ferrous metals and other goods for almost 2-2.5 times. The minister said the world financial crisis put Azerbaijan face to face with serious challenges. â€œDespite that global crisis results had an impact on Azerbaijani economy in 2008, as a result of preventive measures carried out by the order of the countryâ€™s president, the crisis negative impact was not experienced practically in the countryâ€™s economyâ€.
However other systemwide suggestions are winning favor as well: pursing flexible exchange rates, for example, to avoid sudden, frightening devaluations; introducing bankruptcy laws that let companies deep in foreign debt borrow and resume operations even before they pay off the old debts. From the standpoints of both International Monetary Fund and Standard&Poor’s international rating agency, sustainability and great potential of Azerbaijanâ€™s economy as well as successful political and economic policy carried on in the country pave the way for Azerbaijan to easily overcome the global financial crisis in comparison with other countries.