Azerbaijan shows desirable GDP growth amid downturn in other economies: Standard&Poor’s

Business Materials 20 April 2009 15:45 (UTC +04:00)

Azerbaijan, Baku, April 20 / Trend , I. Khalilova/

Azerbaijan is less affected by negative world processes amid deepening world financial crisis, Standard&Poor's director for group of ratings of financial institutes on CIS and Russia Ekaterina Trofimova said. 

"Despite increasing pressure, sufficient defense "bags" has been accumulated in form of reserves to improve management quality both in state and business level in both real and bank sector," Trofimov said.

She said it will enable to smooth over increasing foreign pressure on market. Azerbaijani bank system and economy have integrated with the world economy to a great degree which has both bad and good sides. The development of economy and financial system must not be viewed without taking into consideration ongoing processes in world markets, she said.

"It is obvious that the world economic crisis is continuing. We expect first signs of stabilization by the second half of 2010," Trofimova said. "The return to the period of cheap and accessible money will not be spoken about for many years."

"We do not suggest that Azerbaijani economy will experience downturn in near future. Despite temporary hesitations in GDP growth, Azerbaijan shows desirable GDP growth which is rare in the world context at present amid downturn in other economies," Trofimova said.

She did not make any forecast adding that it is impossible due to unprecedented nature and dynamics of crisis.

"The world did not witness such a crisis for geographical and sector coverage, depth and duration. It is compared with the crisis in U.S. in 1920s, but still there is principal difference," Trofimova said. "On the other hand, the current crisis is more constructive and "working", but not as painful and shocking as it was in previous decades."

Standard&Poor's representatives visited Baku earlier last week to inform Azerbaijan's bank sector about results of analytical assessment of risks in the system. They made presentation for bank directors.

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