Azerbaijan’s non oil sector up by 5.1pct in 1H2021

By Azernews

By Ayya Lmahamad

Azerbaijan’s non-oil sector increased by 5.1 percent in the first half of the year, Center for Analysis of Economic Reforms and Communications Executive Director Vusal Gasimli has said.

In Gasimli's words, the country’s economic growth recovered to 2.1 percent in the first half of 2021.

The growth was at 16.6 percent in the non-oil and gas sector, 8.9 percent in crop farming, 2.4 percent in livestock farming, 5.5 percent in information and communication services and 1.7 percent in retail trade turnover.

“While the global industrial growth is forecasted at 3.5 percent this year, Azerbaijan’s non-oil and gas industry growth of 16.6 percent is commendable. The main driver of economic growth in Azerbaijan is the non-oil industry,” he said.

Meanwhile, during the reported period, the exchange rate of Azerbaijani manat remained stable, and inflation reached 4.3 percent.

Gasimli emphasized that the non-oil exports increased by 25.8 percent in the first five months, while the state budget revenues from the non-oil sector through the State Tax Service increased by 9.5 percent in the first six months of the year. He added that the effective cooperation of fiscal and monetary policies ensures macroeconomic stability.

Moreover, the executive director underlined that Azerbaijan’s economy is on the threshold of new large-scale changes along with the prospects of reintegrating Karabakh and opening up regional communications.

“In Karabakh, demining has already received a new impetus, the process of modern urbanization is in full swing, “smart” settlements are being built, agribusiness, mining, construction, transport and logistics, and services are being restored. The economic regions of Karabakh and East Zangazur created in the liberated territories are important from the point of view of deepening regional specialization, increasing the effectiveness of governance and restoring historical justice,” Gasimli said.

Speaking about the financial and banking sector of Azerbaijan, he noted that since the start of the year, credit investments increased by 3.3 percent, deposits by 7.7 percent, household deposits by 5.3 percent and net external assets of banks by 10.3 percent.

Additionally, Gasimli said that Azerbaijan’s position in the Doing Business report rose from 34th to 28th place, in the Index of Economic Freedom from 44th to 38th place and in the Global Cybersecurity Report from 55th to 40th place.