Azerbaijan, Baku, 3 April /corr. Trend A.Badalova / The growth fate of Azerbaijani economy decreased from 34.5% in 2006 to 24.7% in 2007. However, Azerbaijan remains as one of the countries with the highest rates of economic development, mentioned by the report of European Union, regarding the rates of Azerbaijan's integration into Europe within European neighborhood policy which Azerbaijan joined in 2007.
"The hydrocarbon sector remains as the key force of development. More than 90% of the GDP falls on this sector," the report says. The non-oil sector, which mainly develops at the expense of service and construction increased by 11.3% in 2007, which is less than 2006.
The report says that in 2007 the average level of inflation made up 16.7%. "The limited competition in the import markets, where the monopoly prevails, may explain higher prices for the commodities imported to Azerbaijan as compared to the neighboring countries," the report says.
The report highlights that progresses were achieved with regards to Azerbaijan's entrance to the World Trade Organization. Talks were completed with Turkey, Georgia and Moldova and are still on completion term with the European Union, USA, Japan, Canada and Korea.
The report says that impressive GDP growth is being observed in the Country due to increase in the oil and gas production from Shah Deniz field.
" Azerbaijan reached an agreement with Georgia, Poland, Lithuania and Ukraine on joint work to expand the oil pipeline Odessa-Borda. It may open opportunities to increase supplies of the Caspian oil and it is important for EU's energy security," the report says.