IMF proposes Azerbaijan two ways of non-oil sector development

Business Materials 24 February 2010 20:45 (UTC +04:00)

Azerbaijan, Baku, Feb. 24 / Trend N. Ismayilova /

The International Monetary Fund (IMF) presented a recommendation to the Azerbaijani government to accelerate the process of economic diversification and development of non-oil sector, Head of IMF mission to Azerbaijan Nienke Oomes said on Wednesday.

"As a result of 2009 the economy of Azerbaijan has become one of the economies with the highest GDP growth worldwide. But despite this, if in 2008 the growth of non-oil sector accounted for 16 percent, the increase was at three percent in 2009," Oomes said.

According to her, the Azerbaijani government carries out many activities for the active development of non-oil sector. But this is still small. The IMF recommends to further enhance these programs.

"Our recommendations include the acceleration of structural reforms, improving the business environment, public spending and drawing more investments", Oomes said.

The IMF's recommendations do not include tax cuts, which already are at a low level.

She said there are two ways of non-oil sector development of the country.

"It is improvement of tax administration and reducing the share of shadow economy, as well as improving the efficiency of public expenditure", Oomes said.