Thanks to its large financial buffers, Azerbaijan is in a good position to continue providing support to the economy in the near term, until the pandemic subsides, and the recovery takes hold, Natalia Tamirisa, Head of the International Monetary Fund (IMF) Mission to Azerbaijan told APA-Economics.
When the exceptional pandemic-related support is phased out, this needs to be done gradually. Over the medium term, the priority is to create a new economic model, where growth is driven by a vibrant and diversified private sector. To this end, it would be important to identify reform measures to strengthen and develop the financial sector and markets, improve the efficiency of state-owned enterprises, and diversify the economy to reduce its dependence on oil production. Medium-term fiscal policy plans would need to balance the need to invest in productive infrastructure, nurture human talent, and save oil wealth for future generations.