Money mass growth in 2006 forecasted at 30%
The National bank of Azerbaijan (NBA) forecasts increase of demand for money in 2006 at 20% that determines nominal growth of non-oil GDP. The figure was corrected on denomination effect, as there were some tendencies leading to fund flow from foreign currency acounts to manat ones, Trend reports referring to Khagani Abdullayev, the Director of the NBA Department on money policy.
The factor was taken into consideration in the forecast of money mass for 2006, which is expected to comprise 30%. Non-change of the 2005 tendency is related to calculations, where oil GDP growth is not taken into consideration. According to Abdullayev, manat mass is used in the non-oil sector i.e. non-oil GDP is fully served with money aggregates (Рњ2), which is transitional indicator of the NBAs policy.
As to the NBAs forecasts in mid-term perspective, Shahmar Movsumov, the Director General of the bank, noted that it was very difficult to determine them due to different rates of the budgetary growth. If in 2005 budgetary income growth was 40%, in 2006 it forecasted around 70%.