Azerbaijan’s Central Bank expects positive trends in country’s economy
Baku, Azerbaijan, Nov. 21
By Anvar Mammadov – Trend:
Positive trends that started in Azerbaijan’s economy in 2017 will intensify next year, Elman Rustamov, head of the country’s Central Bank (CBA), said.
He was speaking Nov. 21 at a plenary session of the Azerbaijani Parliament during discussion of the country’s draft state budget for 2018.
“Macroeconomic forecasts for 2018 are continuation of positive trends that took place in 2017,” he said. “The CBA, for its part, will continue to pursue policy aimed at ensuring macroeconomic stability in the country.”
Rustamov said that the CBA will continue to pursue conservative monetary policy next year.
“Next year, we forecast stability in the foreign exchange market provided that foreign markets are not exposed to various shocks,” he noted.
Rustamov added that the main task for the medium-term period is to accelerate the pace of economic growth.
“In order to achieve this, we should pursue effective macroeconomic policy, continue structural reforms and develop human capital,” he said.
In the medium term, Azerbaijan should gradually switch from stabilizing to stimulating macroeconomic environment, he added.
“It is necessary to reduce the level of inflation, boost the money market and pursue stimulating fiscal policy,” Rustamov said. “In particular, it is necessary to revise the structure of state budget expenditures, allocate more funds to the development of human capital, rather than to passive expenditures. Also during this period, it is necessary to complete restructuring of Azerbaijan’s banking sector, continue banks capitalization process and resolve the issue with problem bank assets.”