Azerbaijan, Baku, Nov. 1 /Trend, N.Ismayilova/
International Monetary Fund (IMF) sees a great potential in the development of private non-oil sector of Azerbaijan, the head of IMF mission in the country, deputy director of the Middle East and Central Asia Department Nadeem Ilahi said at a press conference in Baku today.
From October 20 to November 2 in Baku is an IMF mission to meet with the Azerbaijani government consultations under Article IV of the Articles of Agreement "On creation of the IMF." Consultations are held annually on a regular basis.
The IMF mission is in Baku from October 20 to November 2 to conduct consultations under Article IV of the Agreement on the IMF Establishment together with the Azerbaijani government. The consultations are held on a regular basis annually.
Head of IMF mission noted the high potential of Azerbaijan in spheres such as agriculture, transport and communications.
According to Ilahi, this year the growth in non-oil sector of the economy is expected to reach about nine percent compared with 7.5 percent last year, and in 2012 the growth rate could reach six percent.
"Because of technical reasons, in 2011 there was a sharp decline in oil production in Azerbaijan. It is expected that over the next decade, production of hydrocarbons in general will remain at the same level and then begin to reduce," he said.
According to Ilahi, the discovery of a number of new oil fields in the country will give the country a few more years, during which the country will be able to use the hydrocarbon resources.
Recently, the rate of inflation has decreased in Azerbaijan on the backdrop of slowdown in growth in global food prices. It is expected that by the end of 2011 the inflation will be around eight percent, said Ilahi.
"The main challenges ahead are to keep inflation at a low level, maintain financial stability and change the nature of economic growth by reducing dependence on oil and transition to growth, based on self-sustaining of the private sector," said Ilahi.
As a result of this visit, the mission will prepare a report, which will be voted in mid-January, and the next visit of the mission to Azerbaijan take place in April-May next year.
Azerbaijan has been cooperating with the IMF since 1992. It has been cooperating with the Monetary Fund on the level of consultations under Article IV for the last six years.