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Analyst: Azerbaijan shows stability amid negative economic trends in world

Analyst: Azerbaijan shows stability amid negative economic trends in world

Economy
11 March 2020, 19:32 715
Due to disagreements between the OPEC+ (Organization of the Petroleum Exporting Countries) countries over the volume of oil production and amid the increasing negative impact of the spread of coronavirus on the global economy, oil prices have fallen sharply in recent days, political analyst Ilyas Huseynov told Trend on March 11.
Huseynov added that Azerbaijan is closely monitoring processes in the global financial market.
The political analyst noted that the situation on the world oil market, its impact to Azerbaijan, as well as preventive measures were discussed by the Cabinet of Ministers on March 10.
Issues regarding the situation on the global energy market, the decline in oil prices on the world market and its impact on the economy were discussed at a meeting chaired by Prime Minister of Azerbaijan Ali Asadov. In particular, during the meeting, it was noted that the Azerbaijani government has a plan of preventive measures to neutralize the possible negative impact of unexpected economic situations.
"Economy of Azerbaijan is an integral part of the global economy. So in case of an unexpected scenario, stabilizing measures will be applied. The main point is that against the backdrop of negative economic trends in the world, Azerbaijani economy is showing stability, developing, and the country's financial capabilities are expanding.
"A number of important steps have been taken towards the development of the non-oil sector. Today, the country's economy is fully prepared for economic problems. The volume of strategic reserves of Azerbaijan is $52 billion, which exceeds Gross Domestic Product (GDP) by over 8 percent. External debt is 17 percent of GDP. This is one of the lowest rates in the world,” Huseynov noted.
The analyst emphasized that the stability of the economic development of Azerbaijan was reflected in the reports of international financial institutions.
"As in 2019, positive development dynamics continue in 2020. Thus, from January 2020 through February 2020, non-oil GDP increased by 6.7, and overall GDP by 2.8 percent. Inflation was established at 2.8 percent. The measures envisaged in other areas of both monetary and economic policy allow us to say that inflation will be maintained at the stipulated level,” the political analyst added.
The country's economy has a fairly high financial immunity against trends observed in the oil market and in the global economy, Huseynov said.
"In 2019, strategic foreign exchange reserves exceeded GDP by 100 percent and external debt 6 times. There are all possibilities to maintain stability in the foreign exchange market and the manat exchange rate," the political analyst noted.
The state budget expenditures for 2020, including social projects was emphasized during the meeting in the Cabinet of Ministers, and obligations are fulfilled according to the schedule, none of the social projects is canceled, Huseynov added.
"The Azerbaijani government has the appropriate mechanisms to eliminate the negative impact of recent situations in the global economy to economic growth and employment. If necessary, these mechanisms will be immediately applied. Azerbaijan is closely monitoring oil prices in the world market," the analyst said.
"However, along with the foregoing, it is also necessary to strengthen control over the consumer market. In relation to people who try to abuse the situation, raise prices and create an artificial shortage by removing goods from circulation, the most stringent measures should be taken,” Huseynov added.