Azerbaijan, Baku, March 12 /Trend Akhundov/
The International Monetary Fund (IMF) is forecasting an inflation growth in Azerbaijan in 2013, counsellor of the Middle East and Central Asia Department of the International Monetary Fund (IMF) Raia al Marzouqi said at a press conference on the results of the IMF mission results to Baku.
The IMF mission for Azerbaijan led by al Marzouqi has been in Baku since February 26. The main aim of the visit was the holding of consultations with the government of Azerbaijan on Article IV of the Articles of Agreement of the International Monetary Fund.
"We expect inflation to grow to seven per cent by the end of the year and the annual average inflation rate to be 3.4 per cent," al Marzouqi said.
According to him, the growth of public expenditure will become the main factor of inflation growth.
"The IMF recommends Azerbaijan decreases the amount of public expenditure, thereby creating a space for private investments. That should be accompanied by measures for further enhancement of the business environment. The start-up of the ASAN system and creation of e-government, as well as the adoption of a new custom code and the readiness for adoption of a competition code is among the positive measures," al Marzouqi stated.
The Central Bank of Azerbaijan and the State Statistics Committee are forecasting inflation for this year to be at around six per cent.