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Certain sectors of Azerbaijan's economy grow during COVID-19 pandemic

Commentary Materials 14 July 2020 16:51 (UTC +04:00)
Certain sectors of Azerbaijan's economy grow during COVID-19 pandemic

BAKU, Azerbaijan, July 14

By Fidan Babayeva – Trend:

During the spread of the COVID-19 pandemic economy of Azerbaijan has seen an increase in agricultural products, food industry, pharmaceuticals, medical supplies and equipment, biotechnology output, the development of information technology and communication services, electronic gaming market and online trading platforms, Head of the Department of Azerbaijan's Center for Economic Reforms Analysis and Communication, Nijat Hajizadeh told Trend.

Hajizadeh said that the employed population share has decreased globally due to the decline in both demand and supply.

"According to the latest data of the International Labour Organization, unemployment, which more than 340 million people in the world have faced, will also be overcome after the pandemic," Hajizadeh said.

In the search for a vaccine, 140 million people may be out of work by 2020, according to a positive scenario, and about 450 million people may be out of work under a negative scenario.

"The growth of unemployment in the world, particularly in Azerbaijan, will lead to a reduction in consumption and investment, which will lead to a reduction in other sectors, with the exception of mentioned below sectors. If we look at Azerbaijan's indices for the period from January through May, the world economy will also be proportional to sectors that show concrete growth", Hajizade stressed.

During the mentioned period, Azerbaijan sees growth of 3.6 percent in agricultural sector production, 0.4 percent in industry and 14 percent in non-oil sector production. In addition, an increase of 4.5 percent was recorded in information and communication services, meanwhile retail trade turnover decreased by 1.7 percent, food production decreased by 3.5 percent and production of drinks and tobacco decreased by 0.3 percent.

"The specifics of the growth observed in these sectors, against a background of declining overall consumption, is that the income generated by people is concentrated only in these sectors. In other words, in the context of aggregate demand or decline in income, the turnover is concentrated only in these sectors, due to the orientation of spending on the necessary needs or the continuation of activities of these areas. Nevertheless, there is no doubt that during the post-pandemic period new opportunities will be created in Azerbaijan," Nijat Hajizadeh concluded.

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