COVID-19 vaccination may stabilize Azerbaijan's economy

Business Materials 18 January 2021 15:57 (UTC +04:00)
COVID-19 vaccination may stabilize Azerbaijan's economy

BAKU, Azerbaijan, Jan. 18

By Asif Mehman - Trend:

The expansion of the coverage and geography of the spread of the SARS-CoV-2 virus, the causative agent of COVID-19, has led to an economic imbalance, negatively affecting the global economy, international financial and commodity markets, Trend reports.

The difficulties arising in most sectors of the economy as a result of measures of social exclusion in Azerbaijan have negatively affected business activity and economic growth.

A total of about 2.5 billion manat ($1.47 billion) has been allocated from the state budget and other sources for measures to combat the coronavirus pandemic.

Along with this, in 2020, GDP production decreased by 4.3 percent compared to 2019, including in the non-oil sector - by 2.6 percent. The volume of exports decreased by 30 percent compared to 2019, including the volume of non-oil exports - by 5.2 percent and imports - by 21.4 percent.

Moreover, the nominal incomes of the country's population in 2020 decreased by 1.8 percent compared to 2019. At the same time, the ongoing pandemic in Azerbaijan and the recent increase in the incidence rate necessitate the implementation of an additional package of economic and social support for the government in this direction, support for the affected sectors of the economy and business entities, and the implementation of incentive measures aimed at preventing informal employment.

The widespread infection both in other countries and in Azerbaijan leads to the reintroduction of strict quarantine measures throughout the country and the tightening of social isolation measures. In order to protect public health and effectively manage the pandemic, it is considered more appropriate to implement vaccination measures.