IMF looks forward to restoration of Caucasus and Central Asia countries' economic in 2010
Azerbaijan, Baku, Feb. 24 / Trend N.Ismayilova /
Based on the International Monetary Funds' (IMF) forecasts, the economic situation of the Caucasus and Central Asia region that faced with a number of negative shocks in 2009 due to the global financial crisis, will improve in 2010, IMF Middle East and Central Asia (MCD) Deputy Director section head Nienke Oomes said during a presentation of the members of the Azerbaijani-American Chamber of Commerce (AMCHAM) in Baku.
"In 2009, there was observed a reduction of capital flows to the region, as well as to oil-exporting countries, including Azerbaijan, which has experienced the negative impact of a sharp decline in oil prices," she said.
She said based on IMF forecasts, the world economy is expected to recover in 2010. This process will have particularly positive impact on the oil-exporting countries in the region, because of recovery in oil prices.
"Limit of financial stress in the exporting countries of the region, except Kazakhstan, was at a low level, while the situation in Azerbaijan's financial sector was positive," she said.
The IMF offers Azerbaijan to continue diversifying its economy and its structuring for a more sustainable growth.
A significant decline in the regional countries' exports in 2009, including in Azerbaijan by about 30 percent, is one of the results of the crisis's negative impact.
Another aspect of the crisis's negative impact was a decline in the flow of capital to the exporting countries in the region. The third shock was a significant reduction in remittances from other countries, most of which were from Russia, which is particularly negative impact on oil-importing countries.
"Remittances do not play such a significant role in Azerbaijan, so their decline has not had a strong influence on the economy," she said.
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