Baku, Azerbaijan, June 9
By Azad Hasanli - Trend:
The International Monetary Fund (IMF) recommends Azerbaijan to tighten the supervision over the financial sector and continue structural reforms, IMF's new report on oil-exporting countries of the Middle East and Central Asia said.
"In the Caucasus and Central Asia (CCA) countries, economic activity has slowed to a two-decade low," the report said. "Although currency weakening has helped mitigate the impact of external shocks on economic activity, inflation and financial sector vulnerabilities have risen."
"Stronger macroeconomic policy frameworks and better financial sector supervision are needed to maintain financial sector stability," the report said.
According to the report, significant fiscal adjustment would help ensure sustainability over the medium term, along with structural reforms to boost potential growth, competitiveness, and job creation.
The IMF report also stressed the measures taken by the oil-exporting countries after the crude oil prices decreased.
As for Azerbaijan, in 2016, authorities have increased mineral royalty tax rates, raised the threshold on the simplified tax, upgraded checks on tax evasion and increased administrative measures (expected savings are 0.5 percent of GDP), the report said.
The IMF forecasts that the North Sea Brent oil price will hit $36 per barrel in 2016, $42 per barrel - in 2017, $51 per barrel - in 2021.