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Оktay Аhverdiyev: Situation favorable for “Dutch Syndrome” development cannot be shaped in Azerbaijan

Business Materials 24 October 2005 18:48 (UTC +04:00)

The forecast index of the non-oil sector growth in Azerbaijan in 2006 is 10%, the head of the department of the economy, finance and credit policy of the Azerbaijan’s Cabinet of Ministers Oktay Ahverdiyev told Trend exclusively. "However, in reality this figure may exceed the forecast figure, as the share of the non-oil sector in GDP for 9 months of the current year is 12,3%", - he noted.

The GDP total growth for 2006 is planned at the level of some 30%.

"These figures are based on serious economic forecasts. The GDP growth tempos will reduce with the time but in comparison to higher indices of previous years. The GDP nominal volume will steadily grow, also on the account of the non-oil sector, and pre-requisites for that are being established today”, he noted.

According to him, conditions for the “Dutch syndrome” emerging in Azerbaijan are impossible due to the wide spectrum of production in the country. The “Dutch syndrome” implies use of the oil revenues for re-funding in the oil sector. There are a lot of enterprises in Azerbaijan operating in the non-oil sector: they are machine-building, metallurgy, food and light industry enterprises and etc. The oil revenues are being allocated for development of these sectors. So, there cannot be a situation favorable for the “Dutch syndrome”, he noted.

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