Gubad Ibadoglu: "Construction of non-production mega-establishments causes increase of inflation rate"

The due announcement was made by Gubad Ibadoglu, chief of the Center of Economic Research, according to Novosti-Azerbaijan.

As an example he cited construction of gigantic and expensive establishments, including road bridges, new Heydar Aliyev center, Olympic complexes in the regions of the country, renewal of city buildings, as well as purchase of arms for the Defense Ministry.

These expenses, according to the Center, do not lead to appearance of new goods, raise the commodity mass on country's government. On the contrary, the repayment of wages to employees and purchase of necessary building and other materials lead to appearance of new currency on the market.

He said these factors encourage high inflation rate in Azerbaijan's economy.

In this connection, G.Ibadoglu expressed doubt about government's ability to keep inflation on the one-digit level in 2008.

"High inflation rate in Azerbaijan is inevitable, including in the result of raising the cost of goods imported to Azerbaijan and failure to use the anti-inflation law", Ibadoglu announced.