Major achievements of Azerbaijani economy in 2021

By Azernews

By Ayya Lmahamad

The year 2021 was marked by significant achievements in the economy of Azerbaijan.

The coronavirus pandemic, which started in 2020, posed a lot of challenges to the global economy, which have not yet been fully resolved.

However, if to speak about the socio-economic sphere, Azerbaijan not only solved the problems in 2021 but also re-entered the stage of dynamic socio-economic development.

GDP, non-oil industry growth

The Azerbaijani Economy Ministry forecasted a GDP growth of 5.1 percent in 2021, while the non-oil sector is projected to grow by 7.1 percent, due to the growth in services, agriculture, and industry.

It is worth noting that the World Bank forecasted economic growth in Azerbaijan in 2021 from 2.9 percent to 5 percent.

At the same time, the non-oil industry grew by more than 20 percent this year. Non-oil exports increased by 44 percent and are projected to reach $2.6 billion by the end of the year. It should be noted that the non-oil exports have never exceeded $1.9 billion in the history of Azerbaijan’s independence.

Stability of national currency

Taking into account that the world currency market is unstable today, the situation in Azerbaijan is different.

The situation in Azerbaijan’s economy, the demand level for foreign currency, and the situation with foreign trade determine the stability of the national currency. Azerbaijan’s strategic currency reserves exceed $53 billion.

At the same time, the export situation in the energy and non-oil sectors and the volumes of inflow of foreign currency into the country create the basis for a rather stable exchange rate of the national currency.

Moreover, the factors, such as an acceptable level of government debt, a surplus in the balance of payments, and the rapid recovery of economic growth, have a positive impact on the national currency’s exchange rate.

Reintegration of liberated lands

2020 was marked by Azerbaijan’s victory in the Second Karabakh War, the liberation of the country’s territories, and the restoration of territorial integrity.

In 2021, Azerbaijan continues expanding the scale of reconstruction works started in the liberated territories in the post-conflict period.

At present, these territories are being restored according to a unified concept, and important steps have been taken to establish economic and social infrastructure there.

The focus is on the reintegration of these territories into Azerbaijan’s economy, providing employment, creating production, services, trade, transport, logistics, and other areas. All this will lead to further strengthening of Azerbaijan's economic potential and a significant increase in GDP.

At the same time, investments in these areas will be important in terms of increasing non-oil exports and import substitutions. The attraction of new technologies will also be accompanied by innovations in economic development.

The demand for the non-oil products produced in the liberated territories is expected to increase in foreign markets. Thus, Azerbaijan's non-oil exports are expected to increase significantly due to these areas, which will be an additional impetus for economic development.

The liberation of Azerbaijani territories has created a new geopolitical and geoeconomic situation in the region, and the reintegration of these territories into the overall economy will further accelerate the economic development of Azerbaijan.

Sustainable improvement of well-being

Sustainable improvement of the well-being of the country’s population is the focus of the state’s social policy. In this regard, President Ilham Aliyev signed numerous new decrees and orders on increasing salaries, pensions, and social benefits.

Some AZN 1.5 billion will be allocated for the implementation of these decrees and orders, which will cover 2.1 million people and further improve their well-being.

The new stage of reforms in this area is implemented under the president’s order “On additional measures to protect the social well-being of the population”.

The increase of the minimum wage from AZN 250 to AZN 300 from January 1, 2022, is important in terms of minimizing the impact of inflation on the population's welfare.

Strengthened social protection of martyrs’, war veterans’ families

Strengthening the social protection of martyrs’ and war veterans’ families is one of the priorities of the country’s social policy.

The state has always paid great attention to this category of citizens and implemented numerous social projects and programs that serve the well-being of martyrs’ families and war veterans.

In this context, 11,000 apartments and private houses will be provided to this category of citizens in stages over five years. About 3,000 apartments and individual houses are planned to be provided in 2021.

One of the measures to further improve the social conditions of disabled war veterans is to provide them with a car. To date, 7,200 disabled war veterans have been provided with cars.

At the same time, the amount of pensions paid to the martyrs’ families and war veterans is constantly increasing. The state also provides comprehensive support and care for all other segments of the population.

Against this background, Azerbaijan will continue to strengthen its position among the leading world countries with the model of sustainable economic and social development.