TODAY.AZ / Business

Investments in non-oil sector up

05 September 2019 [17:24] - TODAY.AZ

By Azernews

By Leman Mammadova

Azerbaijan’s economy attains further positive indices of growth due to successive implementation of various reforms. Increasing capacity of the economy, rising competitiveness and technological innovations allowed diminishing the country’s dependence on oil and gas exports.

Economic reforms carried out in Azerbaijan promote the development of the private sector and sustainable growth of non-oil production in the country.

Center for Analysis of Economic Reforms and Communication has launched discussions on implementation of Strategic Roadmaps in 2019. The first meeting discussed the work done on “Strategic Roadmap for the Perspectives of the National Economy” with executive bodies.

Strengthening fiscal stability and adopting a sustainable monetary policy, privatization and implementation of public enterprises reforms, development of human capital, favorable business environment were highlighted during the discussions.

Vusal Gasimli, director of the Center for Analysis of Economic Reforms and Communication, said that the growth rate in the non-oil sector in Azerbaijan made up 3 percent, in the non-oil exports – 17 percent and in the non-oil industry – 15.8 percent in January-July 2019.

He stressed that inflation was recorded at 2.7 percent and the manat remained stable.

Gasimli added that investments in the country’s non-oil sector increased by 9.7 percent and reached 4.6 billion manats ($2.71 billion) in the reporting period.

He further noted that the surplus in the balance of payments and the balance of consolidated budget are the basis of macroeconomic stability.

“At the same time, budgetary rules, medium-term spending limits, upper limit of the consolidated budget and debt strategy were adopted to increase fiscal sustainability,” he added.

As a result, revenues in the non-oil sector increased by 841.1 million manats ($494 million) or 20.6 percent.

Agriculture, tourism, information and communication technologies, and processing industries, which are considered basic priority areas in the development of the non-oil sector in Azerbaijan, bear fruits of the strategy of diversification of the country’s economy. Positive indicators and high growth rates favorably affect the state of economy and make it more resistant to external shocks.

The steps made for diversification of the economy and the “Socio-economic development of regions of Azerbaijan in 2014-2018” state program made huge contribution to the non-oil sector, as the main potential for production of non-oil products is concentrated in the regions of Azerbaijan.


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