Azerbaijan’s GDP growth to exceed 5 pct in 2021

By Azernews

By Ayya Lmahamad

Economy Minister Mikayil Jabbarov has said that according to the ministry’s forecasts, Azerbaijan's GDP growth will exceed 5 percent by late 2021.

He made the remarks during the discussion of Azerbaijan's 2022 draft state budget at a plenary parliament session on November 16.

The minister noted that in the first 10 months of the year, Azerbaijan’s GDP growth amounted to 4.9 percent and to 6 percent in the transport sector. Jabbarov added that in all sectors of Azerbaijan’s economy, including the construction sector, the growth dynamics are also noted.

Jabbarov stated that in the non-oil sector in 2017, the added value amounted to about 9 percent, and for 10 months of the year, the growth exceeded 20 percent.

"Recently, Azerbaijan's industrial production, as well as the oil industry, has grown by more than 14 percent. At the beginning of November, the strategic foreign currency reserves of Azerbaijan amounted to $53.5 billion. The main sources of formation of currency reserves are revenues from sales of oil and gas products," the minister said.

He added that an increase in the export of oil products was recorded by 42 percent, making it the highest figure ever, in January-October 2021.

"In 2021, we expect to attract AZN 2.4 billion ($1.4bn) to Azerbaijan's economy from the non-oil exports. In the field of industrial production the value of exported products was $320.4 million, twice as much as in the same period last year," he said.

To finance the development of the economy, as well as ensure its stability for the coming period, the formation of the state budget for 2022 continues, Jabbarov said.

He stressed that within the framework of the draft state budget for 2022 the increase in the number of jobs will amount to AZN 2.8 billion ($1.6bn), which exceeds the same indicator of the state budget in 2021 by AZN 850 million ($500M).

"The draft state budget provides for an increase of financing of social projects, minimum wages, pensions and other social payments. These steps are aimed at neutralizing the global growth of food and oil prices and a number of tariffs," he said.

New stage of development

The minister said that Azerbaijan is entering a new stage of development, which will cover 2022-2030. He noted that a new development strategy of the country for this period has been devised.

"We face such primary tasks as sustainable economic growth, financial stability of the national economy and restoration of liberated territories. To this end, the relevant structures have held fruitful discussions," Jabbarov said.

The minister added that the state budget provides for measures to implement social programs.

National priorities in economy

Jabbarov stressed that Azerbaijan faces new economic challenges, the main one of which is to eliminate dependence on oil. He said that in this context, five national priorities have been determined.

The minister emphasized that four fundamental changes will be made in Azerbaijan’s economy.

“The economic environment will be significantly improved, opportunities for the sustainable development of human capital and the introduction of digital ideas will be created. The main directions of the strategy have already been formed. It is planned to make up to 839 changes in 70 directions in the draft strategy," Jabbarov said.

Tax revenues to state budget

The tax revenues to the state budget reached AZN 7.4 billion ($4.3bn) in the first 10 months of the year, Jabbarov said.

The minister said that the acceleration of economic growth and strengthening of consumer activity this year had a positive impact on tax revenues.

"Tax revenues from the non-oil sector grew by 13 percent to AZN 5.4 billion($3.2bn). Tax revenues from the private sector grew by 20 percent in the first 10 months of this year," Jabbarov said.