BAKU, Azerbaijan, Jan. 13
By Sadraddin Aghjayev – Trend:
The central banks of the world should be expected to raise the discount rate, which will stimulate people to increase bank deposits and reduce the impact of inflation in 2022, Managing Partner of PricewaterhouseCoopers (PwC) Azerbaijan Movlan Pashayev told Trend.
According to him, the removal of funds from circulation will reduce inflation risks in the world economy.
"The impact of the pandemic on the economy and world markets will continue to negatively affect, in particular, inflation, food prices and some other areas. World inflation has a profound effect on everyone. The main process affecting inflation is the rise in transportation and production costs due to the workforce reduction and transition to telecommuting. Many plants and enterprises were unable to continue their operations because of severe restrictions regarding COVID-19, and some of them continue to face challenges in their development. Furthermore, sharp global economic recovery had an influence on inflation as well. Disruption of supply chains and various costs of freight traffic are one of the most frequent factors that affect financial indicators. This can also include oil and gas reserves reduction," Pashayev said.
In his opinion, 2022 will be the year of continuing the reforms begun in 2021.
“We will continue to observe the legalization and transparency of business activities and transformation of state-owned enterprises. We also will develop new roadmaps for business development and will see state corporations under the jurisdiction of Azerbaijan Investment Holding to increase productivity and efficiency. Investments in the transport sector, both the railway and maritime, are continued, and new transport projects are also to be expected," he added.
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