Azerbaijan, Baku, Dec. 26 / Trend J.Nasibova /
Improving the methods of forecasting economic development is required for the further successful development of the economy in Azerbaijan and the use of General Equilibrium Model (AZMOD) is an important step in this direction, Deputy Economic Development Minister Sevinj Hasanova said at the presentation on 'General Equilibrium Model of Azerbaijan: conducted work, results and prospects'.
"Azerbaijan pursues an investment policy developing various sectors of the economy and this is why modelling and forecasting plays an important role for future development," Hasanova said.
She said this model serves as an important tool for analysis of the situation and prediction regarding the draft concept 'Azerbaijan - 2020: look into future", which envisages a double increase in the country's GDP.
AZMOD covers the following sectors of the economy: agricultural products, hunting, fishing, forestry, electricity, gas and water sectors, transport, trade and postal services, healthcare and hotel services.
AZMOD is a modern dynamic general equilibrium model based on the Azerbaijani economy which is the result of joint efforts of the Scientific Research Institute for Economic Reforms under Azerbaijani Economic Development Ministry and the global leader in the field of economic modelling ECOMOD. Apart from the macroeconomic structure, AZMOD provides important sectors of the economy with specific results.
By using AZMOD, politicians can assess the impact of different policies on the economy in general and its different sectors. The model also includes import and export data on the products that can be used during analysis of trade policy.
AZMOD can be used by politicians to assess the impact of encountering a wide range of economic issues, a scenario analysis and strategic planning and the impact of changes in oil prices, energy and environmental issues and government spending.