IMF Announces Forecasts on Azerbaijan’s Oil Revenues
Azerbaijan, Baku / corr. Trend I.Khalilova / The IMF Resident Representative in Azerbaijan, Basil Zavoico, said on 5 April that the aggregate oil revenues of Azerbaijan will amount to $200 billion after 20 years. According to Mr. Zavoico, the oil revenues of Azerbaijan will immediately increase in 2005-2010, but over the next years, oil production will decrease and in 20 years, its volume will equal the indicators which existed two years ago. Therefore, Zavoico considers it necessary to effectively manage oil revenues.
"The IMF employees have prepared alternative expenditure models for Azerbaijan. According to research, spending more than the allotted finances for the mid and long-term strategy of oil revenue management will mean that in 4-5 years there will be no alternatives for the oil sector," Zavoico said. As a result of accelerating the use of State expenditures, growth rates in the non-oil sector will decrease.