The International Monetary Fund (IMF) forecasts GDP growth in Azerbaijan at the level of 2.7% in 2019, and in the following years – from 2.1% to 2.5%.
The economy of Azerbaijan is gradually recovering from the experienced shocks, said Natalia Tamirisa, head of the IMF mission in Azerbaijan, at a press conference in Baku on June 27 following the completion of consultations with the government of Azerbaijan on Article 4.
In her words, many social measures have been implemented in recent months.
“Therefore, we believe that the non-oil economy of Azerbaijan in 2019-2020 will grow by an average of 2.7% per year,” said Tamirisa.
She noted that at the end of 2019, Azerbaijan’s GDP growth was projected at 2.7%. Tamirisa added that the average annual inflation in Azerbaijan this and next year would make 3.3% per year.
She also said that IMF recommended the government of Azerbaijan to speed up the process of privatization of the country’s largest bank, International Bank of Azerbaijan (IBA).
Tamirisa emphasized that the privatization of the IBA was a very important task, since this step would increase competition in the banking sector of Azerbaijan.
In her words, the restructuring of bank assets was a rather complicated process and it was almost completed. “The final stage of work on creating a new business model of the bank and preparing for its privatization is underway. We advise to start this process as soon as possible.”
Assessing the current situation in the banking sector of Azerbaijan, Tamirisa noted that despite the recovery of the sector, it was necessary to continue measures to improve it and increase sustainability.
“In order to increase confidence in the banking sector, it is necessary to reduce the amount of non-performing loans, improve the legal framework governing the financial market, and strengthen financial market supervision. These steps will also prevent future risks,” she noted. (AzerNews/Business World Magazine)