Baku. Musa Ahmadov – APA-Economics. International Monetary Fund forecasts GDP growth for Azerbaijan to be 4% in 2014, 3% in 2015, said the head of IMF mission in Azerbaijan Raja Almarzoqi.
He said that growth in non-oil sector will slacken as a result of decrease of oil production, careful budget and tax policy and macro prudential hardening measures.
According to him, through the oil price in the budget is $90 a barrel, the expenditure commitments on international events limit fiscal opportunities.
If the oil price will be more unfavorable in the future, it can be a ground for consideration of reduction of these expenditures: “However, the budget should be able to take the expenditures to support geographical diversification of natural gas export into account. Completion of a new assessment on Public Expenditure and Financial Accountability (PEFA) will allow more increase of efficiency of public expenditures”.
Almarzoqi said that the rate of exchange is still remaining as basis for the stability of monetary policy based on wide range of resources: “Gradually switching to flexible exchange rate may lead to development of financial market. More slackening of growth rate of consumption loans, financing of capitalization in the banks and reorganization of the International Bank of Azerbaijan will reduce sensitivity of the banking system against effects”.
He also noted that improvement of business environment attaches significant importance in economic diversification and replacement of state investments with private investments basing on market economy: “The priority issues include taking measures in order to remove obstacles in the commerce, as well as extension of coverage of anti-corruption programs”.
Azerbaijani government forecasts GDP growth to be 3.4%.
Follow us on Telegram
t.me/apanewsaz
Follow us on Instagram
Follow us on TikTok
Follow us on Facebook
Follow us on X
