BAKU, Azerbaijan, November 15. Macroeconomic and financial stability in Azerbaijan directly depends on energy prices, the head of the department at the Azerbaijani Center for Analysis of Economic Reforms and Communications Nijat Hajizade told Trend on November 15.
According to Hajizade, authoritative international organizations publish reports on indicators of economic growth of certain countries, including Azerbaijan.
“The reports take into account factors such as cold and hot wars, volatility in energy prices, natural disasters and various viruses, which create additional risks for the restructuring of economic performance,” he said. “Innovation and highly skilled human capital are necessary for sustainable economic growth. Recent reports from international organizations have shown that economic growth in Azerbaijan is associated with high oil and gas prices and infrastructure construction in Azerbaijan’s Karabakh and East Zangazur.”
“Domestic capital investments made in the liberated territories at the expense of the state budget and other sources lead to an increase in local production and employment. The investments will lead to the expansion of the manufacturing of local construction products,” the head of the department noted.
“The number of residents of the Aghdam Industrial Park is also increasing. The transformation of Aghdam into the industrial center of Karabakh will also affect the development of neighboring regions. The agricultural potential of Karabakh and East Zangazur encourages investors to expand their contribution to these regions," he also noted.
Besides, as Hajizade noted, from January through September 2022, Azerbaijan's economic growth amounted to 5.6 percent, and growth in the non-oil sector - 10.1 percent.
"The main part of the growth fell on production by local entrepreneurs and exports," the head of the department said.
He also added that according to the July report of the International Monetary Fund, the average annual price of one barrel of oil for 2022 is $103.88, and in 2023 it’s expected to equal $91.07.