Azerbaijan's inflation rate to hit 22-23% in 2008

"The Economic Development Ministry presented to the Finance Ministry its proposals on the corrected macroeconomic forecasts for 2008, as well as forecasts for 2009-2012. By our estimates, inflation rate will reach 22-23% in 2008. Yet, in the middle term period we are planning to reduce inflation down to the one-digit level", said Hasanova.

She noted that macroeconomic forecasts by 2012 are prepared on the basis of three possible scripts-pessimistic ($80 per barrel), average ($100) and optimistic ($125).

Hasanova added that the Economic Development Ministry predicts real GDP growth rates at 18% for 2009. At the same time, over 80% GDP will be produced by private sector and the share of the oil sector in GDP will make 61% next year.

As was reported previously, in January-July of 2008 inflation rate in Azerbaijan made 13% and annual 20.9%.

It was previously reported with reference to Prime Minister Artur Rasizade that the government of Azerbaijan is going to curb inflation this year at no more than 18%.

Inflation rate in Azerbaijan was 16.7% in 2007, according to Interfax-Azerbaijan.