“Our main goal is to win the coronavirus and get out of the situation with minimum losses so that to save the economy from bigger harm. Here we must choose between the two factors - economic activity and people's health. My choice is clear, it is people's health. The economy can fall one year and grow another. Everything is under control anyway. Therefore, there is no reason for stir to arise in the currency market”, President Ilham Aliyev said yesterday while addressing the video conference dedicated to the social-economic outcomes of the first quarter of 2020, Azertag reports.
The negative impact of the pandemic on the economy is inevitable. Leading international financial organizations already note that the crisis which can be caused by this pandemic will be more severe than the crisis of 2008-2009. It was stated by the IMF management, the head of state said.
At the same time, we know that more than 150 countries have applied to the International Monetary Fund and the World Bank. In other words, every member of the world community already needs help, and that is why they have made an appeal. Azerbaijan is not on this list. I believe that our come off this situation with honor – which I am absolutely sure of - will once again show that all our steps were well-considered and taken in favor of interests of our people and state”, President Ilham Aliyev noted.
"We are already seeing this. Therefore, I am assigning the government, especially the Prime Minister, the Finance Minister and the Minister of Economy, to reconsider state expenditures and cut expenses which are not a priority. At the same time, a very strict tool should be used to control budget spending," the head of state said.
The President stressed that investment expenditures should be reconsidered, as well as current expenditures.
"Sometimes current expenditures are overestimed. Unfortunately, current expenditures of state organizations and state-owned companies are bloated. This area should be given very strict attention. There is a need to take additional steps to ensure full transparency in this area. I believe that this will help us keep our financial and economic situation stable. At the same time I assign the government to find new sources of income…»
The President also said that the Azerbaijani state has sufficient currency reserves: "Recently, some of these reserves have come out, and budget revenues are growing, both last year and this year. Last year, the budget received more than 1 billion manats in excess of the forecast, and over 300 million in three months of this year. Therefore, this issue should be addressed very carefully, and appropriate proposals should be prepared. We don't know how long this situation will last. Therefore, we must take such steps to ensure economic and macroeconomic stability”, President Ilham Aliyev said.
The International Monetary Fund (IMF) forecasts a 2.2% decline in Azerbaijan's economy in 2020 against the background of the spread of COVID-19 coronavirus, says the April World Economic Outlook survey published by the Fund.
In October 2019, the IMF forecast Azerbaijan's GDP growth for this year at 2.1%.
According to the Fund's estimates, Azerbaijan's GDP will grow by 0.7% in 2021.
According to the IMF forecasts, inflation in Azerbaijan in 2020 will be 3.3% per year, and in 2021 it will slow down to 3.2%. In October last year, the IMF forecast inflation for 2020 at 3%.
The IMF forecasts Azerbaijan's balance of payments deficit at 8.2% of GDP in 2020 (October forecast-a surplus of 10% of GDP), in 2021 – the deficit will fall to 3.7% of GDP.
The unemployment rate in Azerbaijan will remain at 5% in 2020-2021.
The government of Azerbaijan forecasts GDP growth of 3% for 2020. At the same time, the government has not yet published a new forecast for GDP rates, taking into account the coronavirus pandemic and cheaper oil.
GDP growth in Azerbaijan totaled 2.2% in 2019.
