Economic cooperation with Germany highlighted

BThe meeting participants also discussed the possibilities for expanding economic cooperation between the two countries, including in the areas of investment, industry and tourism, the work done after the seventh meeting of the working group, as well as the challenges ahead.

The co-chairman of the working group, Deputy Minister of Economy of Azerbaijan Rufat Mammadov informed the guests about the reforms carried out under the leadership of President Ilham Aliyev.

Mammadov said that successful reforms create favorable conditions for sustainable economic growth.

The work carried out has increased the attractiveness of the country for foreign investors. The success achieved is also reflected in reports of international organizations, he said.

In particular, Azerbaijan showed a record improvement regarding its rank in Doing Business 2019, improving its position by 32 steps and entering the list of ten reformer countries.

The meeting also discussed the attraction of German companies to the Free Economic Zone in Alat settlement, the implementation of cargo transportation via the Baku-TbilisiKars railway and the Baku International Sea Trade Port.

Mammadov noted that relations between the countries are developing incrementally. According to Mammadov, last year Azerbaijan’s share among Germany’s partners in the South Caucasus was 70 percent.

He also recalled that in November of last year, an export mission to Germany, which included representatives of 28 Azerbaijani companies, was organized. In addition, 154 companies with German capital participate as contractors in various projects.

The deputy minister also informed the guests about the economic results achieved in Azerbaijan. In particular, Mammadov mentioned the launch of the Trans-Anatolian gas pipeline (TANAP), the opening of the STAR oil refinery in Turkey owned by the Azerbaijan State Oil Company SOCAR, the launch of the second satellite of Azerbaijan Azerspace-2 and other events took place in 2018.

He noted that inflation in the country amounted to 2.3 percent, while the GDP grew by 1.4 percent. Growth in agricultural, tourism and transport sectors amounted to 4.6, 7.6 and 7.9 percent, respectively.

Investments in fixed assets amounted to 12.9 billion manats and the positive balance in foreign trade was 7.6 billion manats, Mammadov said.

He also added that Azerbaijan increased exports by 30 percent, as well as the non-oil exports by 10 percent. Exports of agricultural products increased by 12 percent, while exports of industrial products went up by 9 percent.

In turn, the Director-General for External Economic Policy at the German Federal Ministry for Economic Affairs and Energy, a co-chairman of the working group Eckhard Franz noted that the issues discussed at the meeting will make a significant contribution to the development of economic and trade relations between Azerbaijan and Germany.

Franz told journalists that Germany sees great prospects in cooperation with Azerbaijan in such areas as energy, construction, agriculture, tourism, as well as in the field of vocational training.

"This is the main factor of the successful German economy, because much depends on highly qualified specialists, and we hope that our experience in this field will be useful to Azerbaijan," he said, adding that the development of tourism in Azerbaijan is also being discussed.

Speaking to journalists on the sidelines of the meeting, the deputy minister said that Azerbaijan is holding talks with Germany regarding the export of chemical products.

"We are currently negotiating the issues regarding the supply of hazelnuts, pomegranates, juices, wine, canned products to Germany,” he said. “Germany is also interested in the import of chemical products from Azerbaijan."

Mammadov added that various projects are being implemented in Azerbaijan to expand the export of non-oil goods. Additionally some steps are being taken to increase exports to Germany.

“We participated in various food exhibitions in Germany in 2018," Mammadov said, adding that Europe, including Germany, is interested in the import of Azerbaijani products.

Mammadov stressed that there is a great potential between Azerbaijan and Germany for expanding cooperation in all spheres.

“The main purpose of today's meeting is to discuss the current trade and economic relations between Azerbaijan and Germany and concrete steps to strengthen these relations,” he said.

He said that the issues of expanding cooperation in such fields as energy, agriculture, industry, ICT, transport, tourism and others are being discussed.

“The trade turnover between the countries increased by 61 percent and reached $1.4 billion in 2018,” Mammadov said.

German companies invested $570 million in the Azerbaijani economy, most of which was directed to the non-oil sector of the economy, Mammadov said, adding that 154 companies with German capital operate in Azerbaijan.