Fitch: Reduction of oil dependence of Azerbaijani economy determined by activity of state reforms
Azerbaijan, Baku, July 3 / Trend N. Ismayilova /
The reduction of oil dependence of Azerbaijani economy will be determined by the way of Azerbaijani implementation of reforms, associate director of sovereign analytical group Fitch Ratings Andres Klar said.
"Fitch sees long-term potential in many sectors of Azerbaijani economy, including agriculture and engineering. However, the country should improve the business climate in the non-oil sectors and attract foreign direct investment to realize this potential, " he said.
He said that Azerbaijan's economy relatively well suffered the global crisis. It showed the fastest growth in real GDP in Central and Eastern Europe in 2009 at 9.3 percent. It was stipulated by the increase in oil and gas sector. Non-oil growth declined sharply by 3.2 percent in 2009 from 16 percent in 2008.
"Nevertheless, Azerbaijan could provide a significant budget surplus and current account during this volatile year. The country has not experienced a substantial outflow of capital and maintain a stable currency," he said.
Fitch expects that as a result of the slowdown in hydrocarbon production, real GDP growth will drop to about 2-3 percent in 2010 and 2011.