President Aliyev: Azerbaijan’s economy stable and sustainable (UPDATE 2)

Details added (first version posted on 19:05)

Baku, Azerbaijan, Jan. 21

Trend:

Azerbaijan's economy is stable and sustainable, said President Ilham Aliyev Jan. 21, speaking at 'The New Energy Equation' session held as part of the World Economic Forum in Davos, Switzerland.

The president said it is difficult to expect the oil price going lower, but having this situation today, a decrease in oil price will not be surprising.

He also said that despite the decrease in oil prices, Azerbaijan has kept the social package in place.

Talking about coordination with OPEC, President Aliyev said that Azerbaijan is ready to do it, and actually that was a part of the discussions with some of OPEC members.

The president added that though Azerbaijan is not a big oil producer, more coordination between OPEC members and large non-OPEC members with respect of the reduction of production can bring results.

Unfortunately, after every OPEC meeting the price of oil goes down, noted President Aliyev. He further stressed the necessity of coordination between large non-OPEC countries and OPEC members, and increasing the level of mutual trust.

"If it doesn't happen, OPEC itself will not make a decision, and without it we will have this situation and just wait when the oil price will reach its bottom," he said.

The president added that this is very exhausting, also from a psychological point of view, not to mention Azerbaijan's needs to balance the budget, to have funds for investment and not only into oil and gas.

President Aliyev noted that Azerbaijan needs to invest in social infrastructure, industrial infrastructure, and at the same time to maintain the level of production needed to invest in oil and gas.

He also noted that Azerbaijan has started fundamental reforms of its financial sector, economic reforms, focusing on export-oriented non-oil economy production and forgetting about the oil factor.

"We were trying to prepare ourselves for this period [to come] in 15-20-25 years, but we have to do it now, and I think that we will cope with this situation," said the president.

President Aliyev also noted that the economic situation in Azerbaijan is stable.

"Our foreign debt is only 12 percent of GDP, and our foreign currency reserves are almost the same level as our GDP. I am sure we will manage the crisis, but of course we want to have a predictable future, and to plan our budget for the next year," President Aliyev said.

As for the decline of Azerbaijan's national currency, the manat, President Aliyev said there were several factors for that, such as the drop in oil prices.

The president noted that Azerbaijan's national currency during the last 10 years gained weight against the US dollar, which was a little bit artificial.

President Aliyev went on to add that previously one manat was $1.3, so the first change in the national currency rate was to bring one manat back to $1.

He further said the second change in the rate was mainly due to devaluation of national currencies in neighboring countries, and Azerbaijani goods became non-competitive, adding that this was an additional burden on the country's budget.

"We tried to resist as much as we could, we lost some of our national bank reserves, but we had to take this measure. There were of course some concerns about that, because it immediately reflected in the rise of consumer prices, which we import, since we are still goods-import dependent country. So the increase in prices created certain concern," said the president.

He further said that there was some minor concern based on stress situation, people weren't prepared for that.

"But now it is over, and I believe that the economic development in Azerbaijan will be sustainable," Ilham Aliyev said.

The President said he believes that Azerbaijan had one of the fastest growing economies in the world with 300-percent growth in the last 10 years.

"It was too much, I think, so now the cycle goes down, and I think that with the currency reserves we will manage the situation," President Aliyev said.

Talking about further dynamics of the global oil prices, Azerbaijani president said that he believes that they are close to dropping $3 more, and then, in the second half of the year, the market will grow.

It is a cyclic system, said Ilham Aliyev.

"I remember the time when we launched our main oil development project in 1994, the oil price then was $12, and it seemed to be very normal. And when we were planning the development, I remember, we thought about an optimistic scenario, which was $22 dollars," President Aliyev said.

"Now we are very close to that optimistic scenario," the president said, expressing hope that the market will stabilize, because the oil sector needs investments.

Azerbaijani president said that last year the world experienced the highest percentage of drop of investments in the oil sector.

"So, without that the price will definitely go up," he said.

Ilham Aliyev added he believes that for companies, for investors, for governments, the price at $60-70 per barrel will be perfect.

When asked about the possibility of oil prices rising again, sometime by 2017, Ilham Aliyev agreed that it is indeed possible.

"This second half of this year will be the period of stabilization, and I hope that we can see the growth," President Aliyev said.

Subscribe to Trend in Google News! Subscribe
Exports of Iran to Tajikistan soar
Exports of Iran to Tajikistan soar
Kazakhstan's trade dynamics with TOP-3 CIS partners unveiled
Kazakhstan's trade dynamics with TOP-3 CIS partners unveiled
Kazakhstan, Tajikistan may change customs duties on petroleum products
Kazakhstan, Tajikistan may change customs duties on petroleum products
Loading Bars
Latest
PayPal says it is not pursuing acquisition of Pinterest
Volume of TAP’s gas transportation by end-2021 announced
Prices for gasoline to start 2022 at higher levels
Iranian currency rates for October 25
Azerbaijani servicemen in reserve conducting drills
Number of ships received at Turkish Botas port for 9M2021 revealed
Value of Turkey's leather goods export to Azerbaijan up in September 2021
Azerbaijan establishes radio and television broadcasting in Gubadly (PHOTO)
Zangazur corridor - new reality created by Azerbaijan in region
BHOS student: ‘The liberation of Gubadli made me a Presidential Scholar’
Turkey records surge in number of registered Azerbaijani companies for 9M2021
HSBC surprises with 74% rise in Q3 profit and $2 bln buyback
President of Azerbaijan to pay visit to Turkey
Iran discloses data on annual mining extraction in South Khorasan Province
Iran shares trade data with African countries
Iran’s PEDEC to accelerate work on oil fields
Volume of cargo loaded/unloaded in Iran’s Dayyer port grows
National Iranian South Oil Company repairs equipment, spare parts
Oil prices extend gains to multi-year highs on tight supply
Iran boosts caviar exports
Monthly sales of goods at Iran Mercantile Exchange revealed
Iran's extraction from South Pars gas field to decrease
Iran shares data on tax revenues
Iran could become gas importer – NIOC
Iran extraction data on its from South Pars gas field
Iran’s Bahar Azadi gold coin price continues to rise
Chinese President Xi calls for global cooperation on terrorism, climate change
Sudan PM Hamdok is under house arrest: Report
New private sector led growth model can help Azerbaijan diversify its economy – IFC regional manager (Exclusive)
Kazakhstan logs 1,573 new COVID-19 cases in 24 hr
IS claims responsibility for bomb attack in Uganda
Tesla pulls its new Full Self-Driving beta due to software 'issues'
Turkey reports 24,792 daily COVID-19 cases
At least 4 dead in avalanche on Ecuador's volcano
Zika virus case reported in northern India
Saudi Arabia's Energy Minister says OPEC will not change its strategy
Hurricane Rick edges closer to Mexican coast north of Acapulco
Israeli-led research reveals plant mechanism for dealing with water shortage
Chronicles of Victory: President Ilham Aliyev announces that Gubadli city is freed from occupation on October 25, 2020
Chronicles of Victory: President Ilham Aliyev gave interview to US Fox News TV channel on October 25, 2020 (PHOTO/VIDEO)
Chronicles of Victory: October 25, 2020
116 illegal migrants rescued off Libyan coast
Azerbaijani Navy officers successfully completes internship in Turkey (PHOTO)
Military training session to be held in military unit of Azerbaijani MoD
At least 25, including minors, died in illegal refinery blast in Nigeria
Iran’s RCS receives 30th batch of COVID-19 vaccine
Mandatory vaccination issue to be solved in November, NCDC Head says
Some 16.03 million voters cast their votes in the presidential elections in Uzbekistan
Tug fights container fire on cargo ship off British Columbia
Tokayev arrives in Ashgabat for state visit
Voting in presidential elections in Uzbekistan ends
Growth of Uzbekistan’s real GDP makes almost 7% over 9 months
No mandatory vaccination in Georgia, PM vows
Uz-Kor Gas Chemical opens tender to attract services for int'l goods transport
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 2,036 more COVID-19 cases, 1,045 recoveries
Azerbaijan's executive power in Aghdam opens tender for road overhaul
Inflation rate in Iran increases
Renewable energy dev't envisioned in Azerbaijan's national priorities - minister (PHOTOS/VIDEO)
UK says substantial differences remain with EU over Northern Ireland trade
Israel, UAE sign 'green corridor' agreement for vaccinated passengers - Israeli consulate in Dubai
Turkmenistan to connect grids of its Akhal, Balkan regions with new high-voltage line
Iran reveals COVID-19 data for October 24
Relations between Iran and Azerbaijan to continue based on mutual respect - Iranian FM
Kazakhstan boosts revenues from transporting cargo by air
Azerbaijan sees rise in total assets of local banks in September 2021
Georgia reports 3,436 coronavirus cases, 4,483 recoveries, 43 deaths
Azerbaijani MoD publishes video on events that took place last year this week (VIDEO)
Uzbekistan's CEC talks voters turnout as of 11.00
Total value of mortgage loans issued by Azerbaijani banks up in 9M2021
Prices of potatoes change in Uzbekistan
First VP Mehriban Aliyeva shares photo from visit to Zangilan with President Ilham Aliyev (PHOTO)
Daily COVID-19 case count at 1,677 in Kazakhstan
96 new positive cases of coronavirus detected in Kyrgyzstan
Azerbaijani banks increase issuance of consumer loans
Presidential elections kick off in Uzbekistan
Cargo ship on fire, spewing toxic gas off Canada’s Pacific coast: Officials
Tesla hikes price of Model X, Model S variants by $5,000
IRICA shares data on import of COVID-19 vaccine to Iran
Japan keen to invest in restoration of Azerbaijan's liberated lands
1,677 more COVID-19 cases reported in Kazakhstan
1 dead, 7 injured in shooting at off-campus party near Georgia university
Tesla posts a $1.62 billion profit in Q3 despite difficult car market
198 illegal migrants rescued off Libyan coast
10 envoys to be declared persona non grata: Erdogan
UN's Guterres welcomes Saudi Arabia's climate initiatives in call with King Salman
Presidential elections to be held in Uzbekistan
UK says substantial differences remain with EU over N.Ireland trade
New migrant caravan in Mexico pushes past blockade to head north
Aramco aims for net zero emissions from operations by 2050, CEO says
U.S. administers nearly 413 mln doses of COVID-19 vaccines
Chronicles of Victory: Azerbaijani president gives interview to Le Figaro newspaper on October 24, 2020 (PHOTO/VIDEO)
Chronicles of Victory: October 24, 2020
Buy/sell operations at Iran Mercantile Exchange growing
Iran unveils details of its trade turnover via Astara customs
Putin invites Israeli prime minister to visit St. Petersburg
Iran's Energy Exchange announces products to be on sale on October 24
Turkmenistan launches production of new types of paving slabs
Azerbaijani banks ramp up business lending since early 2021
Georgia and Ukraine talk cooperation within European integration
All news