BAKU, Azerbaijan, April 15. Economic growth accelerated in Azerbaijan, state support in the social sphere increased, foreign exchange reserves increased, investments in the economy and financial support for entrepreneurship increased, the successful renovation of social infrastructure and the implementation of other programs continued as a result of successful economic reforms carried out under the leadership of Azerbaijani President Ilham Aliyev, Member of Committee on Economic Policy, Industry and Entrepreneurship of Azerbaijani Parliament (Milli Majlis) Aydin Huseynov told Trend.
According to him, 1Q2022 were quite successful for Azerbaijan.
"GDP increased by 6.8 percent, non-oil economy grew by more than 10 percent during this period. Growth in industrial production sphere is about 4 percent and in the non-oil industry it exceeds 18 percent. All this indicates that our economy has entered into a new stage of development in the post-pandemic period," Huseynov said.
The external public debt is also being reduced due to implemented perfect strategy. External public debt was 18 percent of GDP a few years ago and it is only 12.5 percent at present. Azerbaijan’s external debt decreased by more than $600 million due to new debt management strategy. Expenses for servicing the public debt in the state budget are declining every year, MP noted.
According to MP, Azerbaijan's active cooperation with international organizations has also been successfully continued and the world's leading international organizations are accepting the new realities created by Azerbaijan.
In particular, the environment formed by Azerbaijan after ensuring its territorial integrity in connection with new cooperation and diversification of communications in the South Caucasus region, efforts towards signing a peace agreement with Armenia could lead to a new stage in the development of relations between international structures (including the EU) with Azerbaijan.
Contacts, in particular with the EU, became more intense after the second Karabakh War and the recent agreements in Brussels testify to the acceptance of new realities.
"Large-scale construction work is underway in Azerbaijan’s liberated territories from Armenian occupation, wide opportunities for economic cooperation are opening up in the region and reputable foreign companies are involved in these processes," Huseynov said.
"From this point of view, international organizations, foreign countries that accept the new realities created by our country have a positive attitude towards modern trends in the development of relations with Azerbaijan. Of course, the achievement of all this became possible due to the principled political will of Azerbaijan’s Head of State," Huseynov added.
World economy faced certain difficulties in 2022, Azerbaijani MP Azer Badamov told Trend.
Russian-Ukrainian military conflict, which began in February, also had a negative impact on the development of economic ties, he noted.
The economic and political processes taking place in world have a certain impact on the economy of Azerbaijan, however, despite this, forward-looking policies pursued under the leadership of Azerbaijani Head of State creates conditions for maintaining the pace of the country's economic growth, Badamov said.
"Coronavirus COVID-19 pandemic also had a negative impact on Azerbaijan’s economy. However, timely decisions, deepening of ongoing reforms and far-sighted steps taken towards the development of the non-oil sector made it possible to complete the first quarter of this year with high indicators," Bayramov noted.
"Paying attention to macroeconomic indicators, we see that GDP grew by 6.8 percent, non-oil economy - by more than 10 percent, industrial production - by 4 percent, the non-oil industry grew by 18 percent, foreign trade turnover increased by 60 percent, export of non-oil products - by 45 percent, external public debt decreased by more than $600 million in 1Q2022," Badamov added.
The volume of transfers from Azerbaijan’s State Oil Fund was 423 million manat ($248.8 million) less than planned, despite the implementation of 99 percent of budget revenues, which is also an indicator of a correct economic policy, he noted.
"The completion of 1Q2022 with economic growth, also the reduction of external public debt, became possible due to the instructions given by the Head of State in the direction of ensuring the development and transparency of the country's economy, also signed decrees and orders," parliamentarian said.
"President Ilham Aliyev, re-elected Head of State in 2018 by a majority vote of Azerbaijan people, at the inauguration ceremony announced the further deepening of reforms in our country. The timely implementation of reforms made it possible to successfully fight the pandemic, end the 44 day second Karabakh War with victory, and achieve rapid economic growth in the post-pandemic period," MP noted.
"Azerbaijan’s Government Budget received 539 million manat ($317 million) or 23.8 percent more by the State Tax Service in 1Q2022 and 236 million manat ($138.8 million) or 23.7 percent more than expected through the State Customs Committee, due to the increase in state support for the development of the non-oil sector, the expansion of anti-corruption measures in economy and transparency of economy," Bayramov added.
Tasks facing the state budget are being successfully implemented and along with economic growth, the agenda includes measures to fight against rising prices and ensure food security, he noted.
"Azerbaijan’s Cabinet of Ministers, on behalf of Head of State, is taking measures to fight against artificial price increases, create food reserves and diversify sources of imports. The success of the measures taken in spite of the fact that, today sufficient food reserves have been created in our country, the existing reserves are analyzed daily and appropriate decisions are made," Bayramov added.
"I believe that the results we achieved in 1Q2022 and the measures that are planned to be implemented by the end of 2022 will not only protect Azerbaijan’s economy from external influences but will also allow us to achieve better results at the end of the year," Azerbaijani parliamentarian Bayramov emphasized.