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CBA head: Global economy including Azerbaijan overcomes recession

Business Materials 12 October 2010 15:55 (UTC +04:00)

Azerbaijan, Baku, Oct. 12 / Trend I. Khalilova /

The discussion of the main directions of budgetary policy over the medium term in Azerbaijan coincided with a historical period in the global economy, Elman Rustamov, chairman of the Azerbaijani Central Bank, said at a plenary session of the Azerbaijani Parliament.

"The global economy, including Azerbaijan, overcomes the recession, which continued over the past two years, and began to demonstrate economic growth," Rustamov said.

He said that although the risks of the active phase of the crisis and the recession are behind, the world economy faced with serious problems. They are divided into two groups: the removal of heavy consequences of the crisis and the formation of a new model of economic growth, new sources for economic growth.

"The world economy is facing with new calls, including the risk of default and old interstate debts, unemployment and social problems, serious risks in the financial sector, and strengthening of trade and monetary conflicts in the world," Rustamov said.

The most developed countries overcame the crisis with grave consequences. According to calculations, their debt burden before the crisis hit up to 75 percent of GDP. It is expected that this figure will increase by 35 points, reaching 110 percent by 2014, " Rustamov said.

"This is a result of multi-trillion assistance programs for the economy of these countries. During the period of economic recovery, these funds should be returned to reduce the debt burden and implement budgetary consolidation, the CBA head said.

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