Azerbaijan, Baku, March 16 / Trend A. Akhundov /
Global economy growth considerably weakened in 2011 compared to fairly high rates in 2010. The observed trends were characterized by great uncertainty.
This was stated in the Azerbaijani government's report as of 2011. It will be considered at the plenary session of the Azerbaijani parliament on Friday.
"The coincidence of the two adverse trends had its negative impact on the global economy," the report said. "The first trend is evident in the slow development of the developed countries' economies, the second - a considerable increase in uncertainty in the budgeting and financial sectors (especially in the second half of the year). The coincidence of serious economic and financial problems required decisive steps to reduce the risks of the second wave of financial-economic crisis in the world."
Thus, the flow of capital into developing countries due to the weakening of growth in developed countries, the availability of debt problems in the U.S. and European Union countries, low interest rates in these countries, as well as the volatility in world prices on main kinds of raw materials were the main risk factors in 2011.
"If there are serious challenges in difficult global economic conditions, the Azerbaijani economy demonstrated stability and achieved significant results in the diversification and growth which is a priority in non-oil sector," the report said. "In the reporting year, Azerbaijan among the countries with above average income, high human development, has become a leading country in the region. It is the first and only country in South Caucasus region, which received an investment grade rating."
At present, the most important economic task set by President Aliyev is a two-fold increase in GDP due to the non-oil sector development and bringing its share in GDP to 80 percent for the next ten years.
"The modernization of the country's economy or its formation in accordance with the stage of an innovative development will create conditions to ensure sustainable economic growth, to overcome existing and expected economic and social challenges," the report said.