Expert: Consolidation of Economy to Enable Azerbaijan to Remove Dependence on Oil Sector
Azerbaijan, Baku / corr Trend U.Ismayilova / Sabit Bagirov , the former President of the State Oil Company of Azerbaijan (SOCAR), now head of the Fund for Assistance to Entrepreneurship and Market Economy, Azerbaijan should provide its full economic independence to get rid of the dependence on oil.
Speaking on the general state of economy he publicized tendencies and risks for the period between 2006 and 2010:
- high growth rate of oil production,
- high growth rate of GDP,
- rise in country' budget incomes,
- rise in budget expenses,
- sharp fall in foreign investments,
- cut in the number of people involved in the oil sector,
- consolidation of manat,
- cut in competitive capability of the real sector,
- cut in reforms,
- rise in public expenses,
- rise in expenses in the social sector.
Bagirov also noted the tendencies and risks in 2010-2030:
- drop in oil production,
- drop in GDP,
- drop in budget incomes,
- rise in expenses out of SOCAR's expenses,
- gradual weakening in the role of oil in the country's economy.
The expert also noted two paradoxes threatening the country by the end of this decade: currency reserves in the amount of approximately AZN 40bln ($46bln) and a large number of people dissatisfied with their social status, as well as export of energy in big volumes and deficit in many parts of the country.