Expected stable growth of Azerbaijan's economy to help reduce unemployment: expert

Expected stable growth of Azerbaijan's economy to help reduce unemployment: expert

Baku, Azerbaijan, July 31

By Azad Hasanli - Trend:

Azerbaijan's projected stable GDP growth in the coming years will help reduce unemployment in the country, financial expert Jalal Naghiyev believes.

Fitch Ratings and Standard & Poor’s have recently affirmed 'BB+/B' long- and short-term foreign and local currency sovereign credit ratings of Azerbaijan. The positive changes in the country's economy were stressed in the reports of both agencies.

Azerbaijan's economic growth will recover and gradually strengthen, averaging 3 percent in real terms over 2018-2022, and nominal GDP will grow from 79 to 93 billion manats in the same period. At the same time, unemployment rate will remain at about 5 percent, according to the report of Standard & Poor's.

Azerbaijan will continue to experience broad social and political stability, Fitch Ratings said.

The GDP growth in the country can exceed forecasts and reach 3 percent (S&P and Fitch expect economic growth of 2 percent; the government expects a 1.5 percent growth this year) taking into account the current economic indicators of the country, the expert believes.

He said this will be facilitated by the measures implemented in the country for the development of the non-oil sector, and in particular small and medium entrepreneurship and non-oil exports.

"We can observe a growth in the number of small and medium-sized enterprises in the country recently. They began to take out loans more actively for business expansion, it is especially well visible in tourism and agriculture," Naghiyev said.

Another notable trend is the digitalization of SMEs, the expert believes. "More and more companies in the segment of small and medium-sized business," he continued, "began to pay more attention to increasing their presence online."

Naghiyev also touched upon the banking system. He said despite that the sector still has problems, it is gradually recovering and showing signs of growth.

"For example, lending to trade and services increased by 5.9 percent by the end of May 2018 compared to the beginning of the year, according to the data of the Central Bank. Lending to agriculture and processing rose by almost 2.2 percent, to production and industry - by 73 percent, to construction sector - by 3.2 times. In general, lending in the country increased by 1.6 percent compared to the figure at the beginning of the year, to 11,945.5 million manats."

At the same time, the expert emphasizes that transformation of the economy is still ongoing in Azerbaijan.

"For example, while earlier the business associated with trade and import prevailed in the country, it is gradually giving way now to the manufacture of various products, exports, as well as tourism and agribusiness. The oil factor is slowly but surely receding into the background. Of course, the oil and gas sector is too important for us and will continue to play a significant role in the economy. However, the measures implemented today will help create other non-oil sectors," Naghiyev said.


Follow the author on Twitter: @AzadHasanli

Iran's awaits action from US over JCPOA
Iran's awaits action from US over JCPOA
Iran's Atomic Energy Organization talks Bushehr Nuclear Power Plant
Iran's Atomic Energy Organization talks Bushehr Nuclear Power Plant
List of Iran's nuclear facilities to remain secret – Salehi
List of Iran's nuclear facilities to remain secret – Salehi
Loading Bars
Revenues from state insurance payments in Azerbaijan increases - minister
Slovenian Railways wants to boost co-op with Azerbaijan in passenger transportation
Kazakhstan’s Air Astana company resuming flights to Georgia
Turkmenistan interested in developing projects with IOM, using digital technologies
Brent prices to reach $80/bbl by 2Q22 even with OPEC+’s output back to 2019 level
Saudi Arabia to end its voluntary oil production cut
Israel eyes scaling up co-op with Uzbekistan to save Aral Sea
Кazakh Electricity Grid Operating Company opens tender to buy construction materials
Azerbaijan reveals latest data on sales through Azexport portal
Uzbek-Korean JV to buy spare parts for emergency diesel generator via tender
Brent price still vulnerable to any disappointments around global vaccinations
Iran issues data on necessary commodities released from its customs
Pakistani military delegation in Azerbaijan on official visit
Turkey's revenues from exporting cars to Israel down
Turkey reveals number of ships received at Gemlik port in Jan. 2021
Turkey's exports to OIC countries on the rise
Azerbaijani currency rates for March 3
Accreditation of national media for F1 Azerbaijan Grand Prix 2021 begins
Iran's Fereydonkenar Port joins Caspian Sea transportation network
Number of coronavirus cases in Uzbekistan passes 80,000
Oil rises on demand hopes after days of sell-off
Bulgarian companies could participate in recovery projects in Azerbaijan's liberated lands - Ambassador (INTERVIEW)
Finance minister Sunak to promise 'whatever it takes' in new COVID budget plan
Turkish auto sales grow 24.2% in February
Kyrgyzstan introduces temporary ban on export of oil products
EIB, European Council presidents open new EU premises in Georgia
Iran ready to export medical technologies to Syria
Hungary interested in including Azerbaijani gas in country's future energy mix - ambassador (INTERVIEW)
ExxonMobil to cut 7% of its workforce in Singapore
2021 Emmy Awards to be held in September
Ireland to re-establish diplomatic presence in Iran
Azerbaijan to contribute to development of CE work on organizing AI security
Biden takes steps to help Merck boost Johnson & Johnson COVID-19 vaccine supply
US Department of Commerce blacklists 14 entities in Russia, Germany, Switzerland
Chinese embassy opposes Indian media's allegation on cyberattacks
OPEC sees positive oil market outlook, continued downside risks
Iran's CBI discloses number and value of exchanged checks
Italian Parliament demands provision of maps of mined areas of Azerbaijan (PHOTO)
AZAL Announces Conditions for Rebooking Tickets for Flights Canceled due to COVID-19 Pandemic
Singapore's manufacturing PMI falls to 50.5 in February
Promise to provide countries with necessary vaccines within COVAX initiative is not fulfilled - State Agency of Medical Insurance
Parliament head to support all joint efforts for new constitution
Georgian President appreciates EU support
Macron to hold phone talk with Iranian counterpart over JCPOA
OECD recommends Georgia to support land registration reform for increasing FDI-SME linkages
Turkmenistan reveals schedule of intercity buses
Azerbaijan's State Tax Service registers Fuzuli Airport LLC
Azerbaijan felt Turkey's support not only during Karabakh war but throughout history - Minister
Int’l Model Non-Aligned Movement Simulation Exercise underway - Azerbaijan Foreign Ministry
Azerbaijan, Germany interested in increasing mutual trade turnover - Deputy minister
Iran's Energy Exchange announces products to be on sale on March 3
Azerbaijani State Agency of Automobile Roads talks about repair and construction on roads
Azerbaijani Finance Ministry places medium-term bonds at auction
Azerbaijan shows footage from Ucbulag village of Fuzuli district (PHOTO/VIDEO)
Georgia to receive first doses of COVID-19 vaccine via Covax platform in February
Irrigation systems to be put into operation in Iran’s agricultural sector
Azerbaijani Defense Ministry shares updated list of martyred servicemen in Second Karabakh War
Larization of loans increase in Georgia
Georgian AgroZone products to be exported abroad from Kutaisi Airport
Turkish specialists together with Azerbaijan’s AzTV to shoot film in Nagorno-Karabakh region
Ro-Pax ferry vessel commissioned by Azerbaijan's president - video report
Azerbaijani winemakers’ production down in 2020
Azerbaijan, Tajikistan discuss development of tourism co-op
Georgia’s banking sector begins year with profit
France uses only quarter of Astrazeneca vaccine doses
Uzbek-Korean JV to buy spare parts for electric actuator via tender
Kazakhstan identifies priority tasks to develop agriculture by 2025
Georgian Ministry of Finance sees decrease in mobilized income tax
Likelihood of interest rate decrease in Azerbaijan for 2021 seems minimal - Unicapital
Azerbaijan's AzNET segment neutralizes more phishing attacks in Jan.2021
Azerbaijan's new borrowings not to raise debt burden - Gazprombank
Azerbaijan studying Turkey's experience to strengthen institution of primary health care (PHOTO)
Uzbekistan, Azerbaijan talk big potential for co-op in agriculture
Hertz set to ride out of bankruptcy with $4.2 billion from investment firms
Money transfers via int'l payment systems down in Kazakhstan
Azercell obtains yet another award on customer experience management
German companies may take part in restoring Azerbaijan's liberated lands - ambassador
Excavation of well in Iran's Ahvaz oil field launched
Uzbekistan considers resuming air communication with Russia
Bahar Azadi gold coin price again falling in Iran
Kazakhstan, Georgia resume mutual flights as COVID-19 restrictions lifted
Uzbekistan eyes expanding mutually beneficial relations with foreign partners
Azerbaijan and Germany to continue co-op on improving qualifications of managers
Generation data of Iran's Shahid Rajaee TPP announced
Lithuania supports subsidizing renewable energy projects in Georgia
Demand for pick-up trucks in Azerbaijan may increase - expert
Kazakhstan boosts agriculture output, sets up tasks for sector's dev't
Turkey issues Jan. 2021 data on passenger traffic at Istanbul Airport
Azerbaijani company discloses output of primary aluminum
Spain's jobless hit four million for first time in five years as pandemic curbs bite
Volume of exports from Iran's Qom Province increases
S.Korean oil company holding exploration on land plots in Uzbekistan
EU executive says joint vaccine strategy not unravelling
Azerbaijan, Germany discuss expanding cooperation in oil & gas sector
Azerbaijani business environment entering recovery period - Minister of Economy
Iran's awaits action from US over JCPOA
Indonesia says identifies two cases of British COVID-19 variant
Europe – Iran held business forum to expand trade
Uzbek-Russian JV completes geological exploration at Akchalak investment block
Azerbaijani electricity supplier first to use special-purpose UAVs
All news