Na­tion man­ages to mit­i­gate im­pacts of ex­ter­nal eco­nomic im­pulses

Azer News - - Front Page - By Ni­gar Ab­basova BUSI­NESS, PAGE 5

The global and re­gional pro­cesses that oc­curred in the world econ­omy in 2015 had only a slight im­pact on Azer­bai­jan, Natig Amirov, Azer­bai­jani pres­i­den­tial aide on eco­nomic re­forms said.

He made the re­marks dur­ing “So­cial busi­ness – way for devel­op­ment” con­fer­ence.

Amirov un­der­lined that the min­i­mal im­pact of the pro­cesses is the re­sult of the coun­try’s pol­icy and mea­sures taken for the devel­op­ment of non-oil sec­tor of econ­omy.

“Drop in oil prices, de­val­u­a­tion of the na­tional cur­ren­cies of Azer­bai­jan and its pri­mary trade part­ners as well as other eco­nomic and po­lit­i­cal pro­cesses that oc­curred in the world has in­flu­enced Azer­bai­jan. Eco­nomic re­forms im­ple­mented in the coun­try that have a log­i­cal and strong ba­sis as well as mea­sures taken for the devel­op­ment of the non-oil in­dus­try have min­i­mized the neg­a­tive im­pact,” he added.

He said that the in­crease of the coun­try’s GDP by 1.1 per­cent in the last year as well as the fact that the vol­ume of GDP per capita amounted to 5,703 man­ats ($3,767) are good ex­am­ples in this re­gards.

As much as 15.9 bil­lion man­ats ($10.4) have been in­vested in the ba­sic cap­i­tal of the coun­try while the share of do­mes­tic in­vest­ments in the cap­i­tal amounted to 56 per­cent.

He men­tioned that the cur­rent sit­u­a­tion in the world mar­ket stip­u­lates ex­pand­ing and ac­cel­er­at­ing the im­ple­mented re­forms.

He also added that the na­tional cur­rency will grad­u­ally ac­quire its fun­da­men­tal value. Amirov un­der­lined that the de­val­u­a­tion of the na­tional cur­rency was in­evitable tak­ing into ac­count neg­a­tive devel­op­ments on­go­ing in the world econ­omy then.

“Neg­a­tive im­pact of pro­cesses that oc­curred in the world fi­nan­cial mar­kets ne­ces­si­tated de­val­u­a­tion of the na­tional cur­rency with a view of pre­serv­ing com­pet­i­tive­ness of the coun­try’s non-oil in­dus­try,” he said.

“Pur­pose­ful mea­sures taken in the mon­e­tary mar­ket of the coun­try has con­sid­er­ably sta­bi­lized the na­tional cur­rency,” he stated.

Main di­rec­tions of the strate­gic “road map” of the na­tional econ­omy as well as pri­or­ity sec­tors of the econ­omy have been set by the pres­i­dent.

The main ob­jec­tive of the road map is to en­sure sus­tain­able eco­nomic growth, cor­rectly de­fine the devel­op­ment strate­gies for aux­il­iary sec­tors that con­trib­ute to cre­at­ing the econ­omy’s lead­ing sec­tors and the nec­es­sary eco­nomic in­fra­struc­ture.

Spe­cial work­ing group headed by Natig Amirov is en­gaged in draw­ing up a plan in ac­cor­dance with the main di­rec­tions of the road map. Strat­egy project on the eco­nomic im­prove­ment for 2016-2020 is ex­pected to be pre­pared by mid-Septem­ber, 2016.

Azer­bai­jani Deputy For­eign Min­is­ter and rec­tor of ADA Univer­sity Hafiz Pashayev, ad­dress­ing the con­fer­ence held in ADA Univer­sity men­tioned that low oil prices have a pos­i­tive im­pact on the im­ple­men­ta­tion of eco­nomic re­forms in Azer­bai­jan.

He un­der­lined that the coun­try’s econ­omy cur­rently ex­pe­ri­ences an im­por­tant stage as in­come from the oil sec­tor de­creases. “Oil prices may pro­vide sup­port for the im­ple­men­ta­tion of eco­nomic re­forms should they re­main at the same level,” he said.

Pashayev un­der­lined that cer­tain com­mis­sions have al­ready been cre­ated in the coun­try to stip­u­late im­ple­men­ta­tion of eco­nomic re­forms.

Azer­bai­jan’s GDP has grown by 3.2 times over the past ten years. The non-oil sec­tor has grown by 2.6 times, in­dus­trial pro­duc­tion by 2.7 times, agri­cul­ture by 1.5 times, and in­vest­ments by 6.5 times.

The Cen­tral Bank of Azer­bai­jan ac­quired $1.19 bil­lion cash fund in Jan­uary-April 2016, which is 5.4 times lower than the amount pur­chased in 2015.

The vol­ume of op­er­a­tions held in cur­rency ex­change ex­ceeded $1.2 bil­lion in that pe­riod. The growth amounted to 20 per­cent as com­pared to the rates shown in the same pe­riod of 2015.

The CBA switched to the float­ing rate of manat on De­cem­ber 21, 2015.

Of­fi­cial ex­change rate of the U.S. dol­lar and euro to Azer­bai­jani manat was set at 1.5240 man­ats and 1.7273 man­ats, re­spec­tively on June 21.

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