Non-oil sector growth projected in Azerbaijan

Tue 13 Nov 2018 15:20 GMT | 19:20 Local Time

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As a result of the measures taken in Azerbaijan, it is projected that the non-oil sector will grow 3.9 percent, Economy Minister Shahin Mustafayev said at the plenary session of the Azerbaijani parliament Nov. 13.

“Considering the changes taking place in the global economy and the economic situation in our main partner countries, Azerbaijan’s Economy Ministry has prepared socio-economic indicators for 2019 and for the medium term over the next three years,” Mustafayev said, according to Trend.

The minister noted that according to the forecasts of the International Monetary Fund (IMF), the average global economic growth in 2018 and 2019 will be 3.7 percent, and according to the calculations of the World Bank (WB), this figure will be 3.1 percent.

Mustafayev noted that along with the positive trend currently observed in the world, there are still some risks.

As a result of tightening of financial requirements in a number of countries, the main risk factors include reduction in capital flows to developing economies, as well as the application of new trade tariffs, geopolitical tensions in some countries and the loss of value of the national currency of major trading partners, he said.

“The course of sustainable development and socio-political stability, the foundation of which was laid by national leader Heydar Aliyev, was further strengthened under the leadership of his worthy successor President Ilham Aliyev,” Mustafayev added. “As part of this course, comprehensive measures were taken to accelerate diversification of the economy, the growth of production and export of the non-oil sector, as well as development of labor relations, was ensured, the improvement of the business environment and the regulatory framework in the sphere of entrepreneurship activity was ensured, and business support mechanisms were created.”

Mustafayev also noted that in the WB’s Doing Business 2019 report, Azerbaijan entered the list of the 10 most reformist countries in the world, and became the country that conducted the largest number of reforms.

The minister noted that in 2019, GDP is projected to increase by 3.9 percent, and in subsequent years by an average of 3.4 percent, while the current account balance is projected to be positive.

The minister said that after analyzing the changes in the global economy and the forecasts of international organizations, the price of one barrel of oil for the medium term was set at $60.

“Next year, an increase in oil and gas production at the Shah Deniz field is expected, an increase of 3.1 percent is expected in the oil sector, and an increase by an average of 3.2 percent is expected in subsequent years,” the minister said. “Investments in fixed assets next year will be 17.9 billion manats, and the value of domestic investments will amount to 4 billion manats. In 2019, the construction sector is expected to grow by 2.5 percent.”

The minister also said that already 63 percent of companies that received investment promotion documents started their work, while the remaining companies are expected to start their work before the end of this year.

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