Baku, Azerbaijan, Sept. 9
By Azad Hasanli - Trend:
The World Bank expects 4 percent growth of non-oil sector of Azerbaijan in 2015 the WB expert Nadir Ramazanov said at the IV annual Azerbaijan conference organized by the Fitch Ratings rating agency Sept.9 in Baku.
Earlier, the World Bank forecasted that the non-oil sector would increase by 3.8 percent by late 2015.
"The decline in oil prices can eventually lead to some pressure even on the non-oil sector, which is due to its considerable support from state investments," he said.
The expert said that the WB links expectations of serious growth in the non-oil sector of the economy to private investments, but this requires reforms and the process may take a long time.
A similar opinion is shared by the expert of the European Bank for Reconstruction and Development (EBRD) Asif Mahmudov.
He said that the EBRD also forecasts nearly the same growth of the non-oil sector.
"The oil sector is the engine of the Azerbaijani economy, and the share of non-oil sector is very small, but it is growing," he said. "Low oil prices today are a chance for the country to diversify its economy."
Mahmudov went on to add that judging by the economic activity of EBRD projects in Azerbaijan, one can say that it has decreased.
"We see that our customers are cutting projects in terms of scale, or delay their implementation," he said. "In addition, lower oil prices provoke a decrease of purchasing power. This is the case all over the world. Regarding the companies, on which one can bet, we have clients who are in a better position, for example, exporters of various products. The devaluation of the national currency had a positive impact on them. The companies involved in the agricultural sector also have growth prospects, and they can build capacity and export products abroad."
Edited by CN