President Aliyev: Azerbaijan’s economy will follow path of its development in 2018
President Ilham Aliyev chaired the year’s first meeting with the Cabinet of Ministers on January 10 to mull the results of socioeconomic development of the country in 2017 and future objectives.
The meeting highlighted achievements of the last year and the expectations in economy and social life of the population in 2018.
In his opening speech President Aliyev said that Azerbaijan dynamically and successfully developed in 2017. The results achieved in all spheres of life have made a great contribution to the overall development of the country, he stressed.
The Azerbaijani people lived under conditions of stability and security in 2017, stability, security and normal living are ensured in Azerbaijan, President noted. “Taking into account the complex geopolitical situation in the present world, the results achieved in this area in Azerbaijan are highly appreciated.”
The head of state voiced his confidence that these positive trends will intensify in Azerbaijan in 2018. The people-authority union is the key condition for our success and the people-authority unity is obvious today. The basis of our successful policy is the support of the people. The strengthening of these positive trends, of course, will ensure longterm and sustainable development of our country.”
Non-oil export grow
Ilham Aliyev said that Azerbaijan's non-oil exports grew by 24 percent in 2017, noting that the country’s export potential is growing.“In 2017, exports grew by 19 percent and non-oil exports increased by 24 percent. This is the result of the relevant work. The number of population is increasing. The population grows by at least 100,000 people a year. Consumption is rising, the number of tourists is increasing. Last year, the country received almost 500,000 tourists more than in 2016. Obviously, it increases consumption. Nevertheless, our non-oil exports, including the export of food products, are growing rapidly. The growth of the non-oil sector by 24 percent during the year is the result of the work done," President Aliyev said.
The head of state noted that imports grew by about one percent, and this is natural. “Azerbaijan, first of all, meets its demand at even larger volumes through domestic production. On the other hand, the purchasing power of citizens increases. So, I believe that the preservation of imports at a stable level is our greatest achievement. The positive surplus of trade balance is $6.2 billion. Economists are well aware that this is an excellent indicator. I am confident that the difference will be even greater in this and subsequent years. This is one of the very important factors for improving the macroeconomic situation, and keeping the stable rate of the manat,” he said.
The President stressed that the major economic indicators are very positive, while development of the regions was constantly in the spotlight.
Number of IDPs provided with new housing to be doubled
The number of internally displaced persons (IDPs) provided with new housing will almost be doubled in Azerbaijan in 2018, said the President. He noted that new townships, settlements for internally displaced persons will be built this year.
“If in 2017 we moved 12,000 people into new apartments, houses, this year at least 20,000 IDPs should move to new apartments, houses. This indicator can be higher,” the head of state said.
National army to become more powerful
The President further went on to say that the country’s army will become more powerful and is ready to fulfill any instruction: “We are increasing our military power. According to international rankings, Azerbaijan’s army is among the world’s powerful armies. We are doing everything that is necessary for our army. The financial and technical resources of the army are being improved.”
“Unlike poor Armenia, we live on our own and increase our military power at our own expense. Unlike Armenia, we do not beg money from anybody, we do not apply for loans,” the President added.
President Aliyev emphasized that the Azerbaijani public, as well as the enemy should know that the Azerbaijani army will become more powerful and stands ready to fulfill any task: “This was evidenced by the recent history.”
Azerbaijan becoming huge transportation hub
The execution of the Baku-Tbilisi-Kars railway has already made Azerbaijan one of the largest international transportation hubs in the world, said the President.
“The launch of the Baku-TbilisiKars railway is an event of profound importance not only to our country, but also to the region and to the whole world,” he said. “This road starts in Baku. It is not a coincidence that a solemn opening ceremony was held in Azerbaijan. A 504 kilometer-long stretch of the road, which is nearly 850 kilometers in length, was built and restored in Azerbaijan. Azerbaijan has undertaken the largest financial burden in the construction of this road.”
President Aliyev stressed that the execution of this historical project will make and has already made Azerbaijan one of the largest international transportation hubs in the world: “In a short span of time after we launched this road – in only two months – we received requests to join Baku-TbilisiKars from a number of countries.”
Economic success to continue in 2018
In his closing remarks, the head of state said that the country's economy will follow a path of its development in 2018.
“A number of important projects are planned to be implemented during the year. Of course, we must try to ensure that the macroeconomic situation is stable in 2018. I have no doubt that it will be so. Macroeconomic stability is an important factor for every country. Over the past months of last year, the macroeconomic situation got stabilized, and the inflation rate was low,” President Aliyev said.
“I am confident that these positive trends will become even stronger in 2018. The rate of the manat is stable. As I have said, our positive surplus of $6.2 billion is a very important factor for macroeconomic stability.”
Reduction of foreign public debt in spotlight
Talking about foreign public debt, President Aliyev said that work on reduction of the debt should be carried out in the coming years.
“Today our foreign debt is at a reasonable level. However, I have set a task not to increase but reduce the foreign debt,” President Aliyev said.
“Increasing currency reserves give us economic independence. As I have said, we ourselves issue credit and we are not dependent on foreign loans. Even at the very low price of oil, we did not allow any delay in financing the Southern Gas Corridor, which is of strategic importance to the country, and almost certainly this project is about to complete. Thus, the high level of foreign exchange reserves strengthens economic independence. This, in turn, strengthens our political independence,” he said.
Ilham Aliyev said that Azerbaijan is one of those countries that pursue an independent policy.
“The number of such countries is not so high, especially this is not peculiar to countries with not so big population and territory. However, we are on the path of independence and our free and independent life is superior to us. That is why our economic potential is necessary not just for the solution of economic issues. Our economic potential increases our political power, strengthens our position in the region, and allows us to define and implement the longterm strategy of our country. Of course, our economic power has played a major role in financing the Southern Gas Corridor, the BakuTbilisi-Ceyhan, Baku-Tbilisi-Kars, North-South projects and other key projects. We have borrowed foreign loans for the implementation of major strategic projects. But if we had not had a very strong economic situation, we would not have been able to get these loans, and we well remember that there were not many willing to lend us loans when we had not money. As we have grown up economically, the resources of the Oil Fund have started to grow, then the number of those desiring to lend us increased, and we are already making the choice.”
In short, the level of our external debt should decline. This year’s budget provides for repaying foreign debt. The main task is not to borrow foreign loans to the less important projects. We only need to borrow foreign loans for technologically important projects. Otherwise, it is not right to get a loan from abroad for the construction of a building or any other project that we can do using own capacities,” President Aliyev said.
2018 to accent on industrial and agricultural development
The year 2018 will be successful in terms of industrial and agricultural development in Azerbaijan, Azerbaijan’s President Ilham Aliyev said.
The Head of State noted that practical steps are being taken to create industrial parks. The President noted that the Neftchala Industrial District was put into operation last year, while Hajigabul, Masalli and Sabirabad industrial sites are under construction.
“Opening of the first plant in the Mingechevir Light Industry Park is expected this year. The work at Sumgait Chemical Industry Park is very successful. Four new enterprises were opened and foundation of three enterprises was laid in late 2017. I am sure that they will be launched this year or early next year. Thus, the number of residents of the Sumgayit Chemical Industry Park has reached 15 and the volume of investment to be invested is $ 2.7 billion, which is a good result, and the $2.7 billion investment is a big figure,” President Aliyev said.
The head of state expressed confidence that 2018 would be a remarkable year for industrial development: “It is planned to open ten new carpet factories, so the number of carpet factories should reach 20 by the end of this year. This means thousands of jobs. Particularly, women are working in these factories. They are nice jobs created for women, where they can show their knowledge and talent, and create good financial opportunities for themselves and for our country. Their products create wonderful opportunities for our country’s export potential and promotion of the Azerbaijani carpet in the world. That’s why it is planned to open ten new factories this year.”
The head of state also expressed his confidence that the year 2018 will be successful for the development of agriculture: “Last year, the agriculture sector increased by 4.1 percent. This is a good indicator. Also, we are dealing with food security issues, and we develop the traditional technical field of agriculture. I have to note that Davos World Economic Forum has made a calculation over the food security, and Azerbaijan is ranked the 57th place in terms of food security index. This is a good indicator. Additional measures will be taken in the field of food security, in particular, grain production, so that to reduce dependence on imports and increase the volume of export-oriented products as in 2017.”
Touching upon the “ASAN Service”, Azerbaijan’s leading eGovernment institution acting on behalf and in cooperation with other state entities in public service provision, President Aliyev said that the total number of ASAN Service centers will reach 15 this year.
The President said that ASAN Service centers have received about 20 million requests so far, adding that the project marked a breakthrough in the public service sector.
At the end of the meeting, President Aliyev declared 2018 the ‘Year of the Azerbaijan Democratic Republic’. He noted that many events will be held both in the country and abroad in this regard during this year.