The growth rate of Azerbaijan’s economy in 2018 may exceed forecasts, member of the country’s Parliamentary Committee on Economic Policy, Industry and Entrepreneurship, MP Rufat Guliyev said.
He added that 2017 was a turning point for Azerbaijan, but this year the country’s economy grew again – over six months the GDP grew by 1.3%.
“I believe that in 2019-2020 the growth rate of the economy will more accelerate,” he said.
Fitch Ratings and Standard & Poor’s have recently affirmed BB+/B long- and short-term foreign and local currency sovereign credit ratings on Azerbaijan. The positive changes in the country’s economy were stressed in the reports of both agencies.
Azerbaijan will continue to experience broad social and political stability, Fitch Ratings said.
Azerbaijan’s economic growth will recover and gradually strengthen, averaging 3% in real terms over 2018-2021, according to the report of Standard & Poor’s rating agency.
Commenting on those reports, Guliyev stressed that this was a natural result of socio-economic policy pursued under the leadership of the country’s President Ilham Aliyev.
“There are a number of factors that positively affect the general economic situation,” he said.
“Firstly, over the past 2.5 years of reforms, among the post-Soviet countries the most powerful foundation for the development of import-substituting and export-oriented spheres of the economy was created in Azerbaijan,” Guliyev said.
“Secondly, oil prices are now stable and are at an acceptable level for Azerbaijan,” he said. “Thirdly, the fact that state structures are ahead of budget forecasts also positively affects the economy.”
“Fourth, the implementation of big transport projects such as Baku-Tbilisi-Kars, the first phase of construction of the Baku International Sea Trade Port, the North-South transport corridor has been completed or is under completion in the country,” Guliyev said.
“All these projects will greatly increase the freight traffic through our country and thus, will ensure a stable and big inflow of currency into Azerbaijan,” Guliyev added. “Another key point is a political factor.”
“Political stability prevails in Azerbaijan,” he said. “Thanks to President Aliyev’s foreign policy in the world arena, our country has been recognized as one of the most reliable partners. We always fulfill our obligations.”
“Azerbaijan’s national currency is stable, the balance of payments is surplus, international currency reserves are growing, unemployment is falling,” he said. “All of the abovementioned factors create a synergetic effect, which is expressed in the growth rate of our economy.”
“In general, the socio-economic model of Azerbaijan under the leadership of President Aliyev withstood all global cataclysms,” Guliyev said. (Trend/Business World Magazine)