IMF to update its assessment of developments and prospects for the Azerbaijan economy

Business Materials 23 August 2012 16:13 (UTC +04:00)

Azerbaijan, Baku, Aug. 23 / Trend I. Khalilova /

The International Monetary Fund (IMF) has scheduled a staff visit mission to Baku which will be led by a new Mission Chief to Azerbaijan Mr. Raja Almarzoqi", head of the IMF Local Office in Baku Ms. Aghgun Gadirli told Trend on Thursday.

"The purpose of the staff visit is to update its assessment of developments and prospects for the Azerbaijani economy and to hold discussions on macroeconomic policies", she added.

"As per agreement with the Azerbaijani government, a staff visit will take place during November 8-20, 2012," she said.

According to the April report, the IMF predicts Azerbaijan's GDP growth as of 2012 at 3.1 percent, in 2013 - 1.9 percent, in 2017 - 3.1 percent. According to the IMF, inflation in the country in 2012 will hit 5.6 percent, in 2013 - 5.6 percent, in 2017 - 6.5 percent. According to the IMF updated report "World Economic Outlook" published in July, the International Monetary Fund lowered the forecast for global economic growth in 2012 from 3.6 percent expected in April to 3.5 percent and in 2013 - from 4.1 percent to 3.9 percent.

The Azerbaijani government increased the forecast in terms of GDP by 3.5 billion manat by late 2012 within the adjustment of predicted parameters of the Azerbaijani state and consolidated budgets for 2012.

Thus, the GDP will exceed 50 billion manat.

The growth rate of the country's GDP as of 2012 were initially projected at 5.7 percent, in 2013 - 5.1 percent. However, economic growth rates are expected to reduce to around 2.5 - 3 percent due to a planned reduction in oil production in the country by the end of the year.

Azerbaijan's GDP in 2011 increased by 0.1 percent compared to 2010, by 0.5 percent in the first quarter of this year compared to the same period of 2011 and by 1.6 percent in annual measurement for January-July 2012.

Azerbaijan joined the International Monetary Fund on September 18, 1992. The cooperation between the IMF and Azerbaijan was especially intensive between 1995 and 2005, and during these years Azerbaijan frequently benefited from IMF policy advice and financial assistance in support of the Government's economic programs.

The IMF Office in Baku has been open since 1992 and although since October 2009 its staff has been reduced, the IMF remains an important partner to the government of Azerbaijan. It is worthy of note that IMF played an important role during the global economic and financial crisis.

The official exchange rate is 0,7854 AZN/USD as of Aug. 23.