President: Azerbaijan successfully tackles economic development issues (PHOTO)

Business Materials 25 October 2011 15:42 (UTC +04:00)
President of Azerbaijan Ilham Aliyev presided over a Cabinet meeting on Oct. 24 on the outcomes of the country’s socio-economic development in nine months of 2011
President: Azerbaijan successfully tackles economic development issues (PHOTO)

Azerbaijan, Baku, Oct. 25 / Trend /

President of Azerbaijan Ilham Aliyev presided over a Cabinet meeting on Oct. 24 on the outcomes of the country's socio-economic development in nine months of 2011.

The President made opening remarks in the meeting, saying the year 2011 marked a success for Azerbaijan`s economy. He noted Azerbaijan managed to have fulfilled all socio-economic tasks the country faces.

President Aliyev said the GDP growth recorded not so high pace, which is linked with certain reasons.

"I am glad that we were able to achieve diversified development of the country's economy thanks to the work that we have carried out in the previous period and the right policies," he said.

Although the GDP grew just by 0.5 percent, Azerbaijan's non-oil economy grew by 8.2 percent, Aliyev highlighted.

"As for the fact that the country's GDP recorded just a 0.5-percent increase, this is due to the reduced oil production in 2011. As a result, we can say that, this drop did not allow the overall rate to be high. However, there was not set such a goal. Our economy, our economic structure is largely changed for the better. Thanks to the work done in the previous period and that will be done in the coming years our economy will reveal itself as a fully diversified economy. That is, the earlier launched projects, as well as ongoing ones, indeed, made an enormous contribution to the Azerbaijani economy," the Head of state said.

President Aliyev said the country built a strong industrial potential, with the manufacturing sector having strengthened. However, the reduced oil production overall is negative, he said.

"But, the non-oil sector of Azerbaijan's economy achieved a 9.2-percent growth. This growth is achieved through investments in the real sector and development of entrepreneurship. This was achieved through issuing loans, adopting programs for the entrepreneurship development and a highly successful public policy," Aliyev said.

Thus, Aliyev stated, a task set few years ago, the task of taking actions to create a powerful industrial potential in Azerbaijan was successfully carried out.

Aliyev underscored that the country's agriculture sector also increased.

"Even larger programs will be realized in 2012. The government allocates huge funds and grants privileges for the agriculture sector development. Delivery of equipment, loans on preferential terms and subsidies - all these contribute in the development of agriculture. The agricultural sector saw a 7.6 percent increase in the three quarters of the year and it is not accidental. The industry also has great social significance, as about half the population lives in rural areas," Ilham Aliyev said.

The President said the country's currency reserves increased by $11 billion to over $40 billion. "We ensured this thanks to our growing economic potential."

"This is a very high figure. If we look at the developed countries' indicators, we can see that Azerbaijan leads in this area and leaves behind many countries. If we consider that we have the correct oil and gas policy and strategy, that we constantly coordinate investing with the expected revenues, there is no doubt that we will further increase our foreign exchange reserves without reducing investment and social spending in the coming years," President Aliyev stated.

The international financial institutions see great reforms carried out in Azerbaijan in economic and social spheres, rising credit ratings of Azerbaijan, he said.

"At a time when the credit ratings of the developed countries are falling in the crisis years, the credit ratings of Azerbaijan rise. The influential world organization - the World Economic Forum in its next report on the countries' competitiveness, praised Azerbaijan's activities and honored it with the 55th place. The Azerbaijani economy occupies the first place in terms of the competitiveness, the country is a leader in the CIS," he said.

President Aliyev highlighted Azerbaijan`s social policy, saying serious steps have been made to strengthen the population`s social security. "We have a targeted social program, which covers 113,000 low-income families who receive an average of 130 dollars." "We have carried out successful reforms to increase pensions and eliminate the unemployment level, which currently stands at 5.5 percent."

He said: "Additional efforts are being made to decrease the unemployment level in the county. Nine months of this year saw the opening of 74,000 jobs in the country, with 50,000 of them being permanent. As a result, the number of jobs opened in Azerbaijan in the last 8 years reached 950,000."

President Aliyev said pensions of about 900,000 pensioners were increased by an average of 40 percent in 2011. "As a whole, pensions increased by 35 percent in Azerbaijan for the first nine months of 2011. This is a very high figure, great achievement, very serious step, timely, fair and very correct step taken to better ensure the older generation in the material terms. Moreover, the average wage also increased in the country. Today, the average pension in Azerbaijan is at $190, while the average wage is at $ 450. This is a good indicator, but it should be even higher," he stated.