“Oil price decline in the world market led to decrease of Azerbaijan’s oil revenues. However, according to preparation of the state budget, any impact of global processes on Azerbaijan is almost equal to zero. According to preparation of different scenarios on the background of oil price decline, as well as forecasting of macroeconomic indicators for next three years, Azerbaijan’s economy and living standards will improve”, Hajiyev said.
Finance Minister Samir Sharifov touched upon the macroeconomic indicators. The Minister noted that currently, Azerbaijan’s economy is affected by two external shocks. One of these shocks is decline of raw material in the world market. The other shock is sharp decline of national currencies in the many regional countries.
“Value of Azerbaijani products increased as a result of devaluation in the neighbour countries. They lose from the standpoint of competitiveness in both inside the country and abroad. This unsuitable condition made the government to take important measures. Therefore, our national currency devalued in February. Complication of global economic processes is observed once more. Decline in oil price influences not only oil exporting countries, but also oil consuming countries. Macroeconomic forecasts of current year were reconsidered for third time due to global economic processes. Socio-economic development forecasts, GDP growth is expected to make 3.3%, down 1.1% from previous forecast. Oil sector is forecasted to increase 0.6%, non-oil sector 5.9% by the end of this year. Amendments were made to this year’s budget due to decline of oil revenues. So, budget incomes are expected to make AZN 17.08 bln, down 2.1% from confirmed forecast. Expenditures are expected to be fulfilled at the level of 84%, down 16% from the confirmed forecast”, Sharifov said.
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