Azerbaijan’s economic growth is the result of reforms carried out by President Ilham Aliyev – experts

BAKU, Azerbaijan, July 16. The Azerbaijani economy has once again demonstrated the successful development of the country and the fulfillment of all the tasks set for the first half of 2022, reports Trend.

Economic reforms helped attract two billion manats ($1.18 billion) to the budget through the tax line in excess of the forecasts for the period under review.

From January to June this year, economic growth and growth in the non-oil economy amounted to 6.2 and 9.6 percent, respectively. General industrial production increased by 2.1% and non-oil industry by 11.5%. In addition, the income of the population has increased by almost 20%.

Azerbaijan’s foreign trade has also increased significantly – by more than 70%. Azerbaijani merchandise exports more than doubled and non-oil exports increased by 25%. For six months, the positive balance of the foreign trade balance amounted to 12.1 billion dollars. As of July 1, 2022, Azerbaijan’s external public debt amounted to 10.7% of GDP.

Economic expert Emin Garibli, commenting on the issue, said that the growth of macroeconomic indicators in the first half of 2022 was achieved thanks to the reforms carried out in recent years under the leadership of President Ilham Aliyev.

“The reforms carried out in our country should be divided into two parts: natural resources and hydrocarbons, and since 2011 the economy has been actively diversifying by strengthening human capital. Since 2014, Azerbaijan has been pursuing an active and targeted in that direction,” noted Garibli. “Based on these works, a document aimed at the development of priority sectors in Azerbaijan has been prepared. In addition, the country has started granting tax and customs preferences, as well as preferential loans.”

“Another important factor here is the implementation of social policy. These reforms have led to growth in salaries and pensions, which is the basis for the economic growth of the country’s budget,” he noted.

According to him, the reforms carried out by the Azerbaijani government to grant preferences will continue to develop in the future.

“We see how business entities and the population actively use state incentives and programs for business and human resource development. Exemptions from taxes, customs and other types of fees in industrial zones , including those of Karabakh in Azerbaijan, will give an additional boost to economic development,” he added.

The expert also noted that the restoration of the liberated territories in accordance with the concept of “smart” cities and towns will also contribute to the economic development of Karabakh itself and Azerbaijan.

“The use of innovations and technologies increases the country’s attractiveness for investment, and through the creation of ‘smart’ cities and towns, Azerbaijan’s investment potential will increase significantly,” Garibli stressed. .

“The ongoing diversification reforms will continue in the future, and Azerbaijan’s importance will increase not only within regional economies, but also globally,” he added.

According to another expert, Ilgar Valizade, a number of works carried out have contributed to the growth of macroeconomic indicators.

“Reforms aimed at diversifying the economy feature prominently among the works. It is no coincidence that non-oil exports, as well as the sector as a whole, have grown rapidly in Azerbaijan in recent years. share of value-added products in “the structure of Azerbaijani exports is increasing, which indicates the stimulation of entrepreneurship and the development of the production base. The growth of the budget is also influenced by the favorable situation of world prices of energy resources, mainly oil and gas,” Valizade said.

“Revenues from gas export and oil export have recently become equal. This success was achieved thanks to far-sighted actions and measures taken by the leadership of Azerbaijan,” the expert underlined.

He noted that at the beginning of the implementation of gas projects in Azerbaijan, many critics claimed that this sector was unprofitable.

“However, the Azerbaijani government was determined to implement the Baku-Tbilisi-Erzurum gas pipeline and the Southern Gas Corridor projects. Today we see how gas prices are rising, especially in Europe, and the infrastructure created in Azerbaijan is now in great demand,” the expert said. “Our country, in accordance with current realities, is ready to meet market challenges. In addition, substantive negotiations are underway to expand gas infrastructure, as well as to increase the supply of Azerbaijani gas.”

Also, according to him, an important factor is that Azerbaijan has become an electricity supplier.

“The volume of electricity sold by Azerbaijan in foreign markets is constantly growing. Our electricity is imported not only by the countries of the region but also by the Balkan states,” Valizade said.

As for the budget surplus in the first half of 2022, according to the expert, the budget increased due to the economy’s significant income from exports.

“The government of the country expects the Azerbaijani state budget to reach about 67 billion dollars by the end of this year. This is quite an impressive figure, which indicates that Azerbaijan will cope with all the tasks set , including the restoration of the liberated territories and the implementation of major infrastructure projects in other regions of the country,” Valizade concluded.

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