"World economy has "frozen", demand and supply are narrowing at the same time, unemployment is increasing, pandemics threats mankind, stock and goods markets, especially oil prices have collapsed", Executive director of the Economic Reforms Analysis and Communication Center of the Azerbaijan Republic Vusal Gasimli told APA-Economics.
He stated that according to calculations of McKenzie, economic decline will be 4.7% in the world, while 9.7% in Eurozone, 2.7% in China, and 8.4% in the US this year: "At best, the world economy will be able to reach pre-crisis levels in the third quarter of 2022. Shortly, in relevance to Black swan theory of Nassem Taleb, nobody could forecast coronavirus crisis until three months ago, but the world faced with the heaviest crisis of the XXI century in the short period of time. Azerbaijani government fights with global shocks and results of pandemics while the world economy hits new anti-records."
V. Gasimli also said “Azerbaijan’s anti-crisis program is worth AZN 2.5 bln. and accounts for 3.1% of the GDP. Note for comparison that the Georgian government has adopted the aid package worth of 1 bln. laris i.e. at the ratio of 2% of the GDP. Russia has adopted the aid package amounting to about 300 bln. roubles which accounts for 0.3% of Russia’s GDP. The Turkish Republic has disclosed adoption of the aid package worth of 100 bln. liras which accounts for 2% of the GDP. Kyrgyzstan has adopted anti-crisis package at the ratio of 1% of GDP or US$ 9.4 mln., and Uzbekistan - in the amount of US$ 1 bln. or at the ratio of 1.5% of GDP. Spain has adopted a package worth 8.9 bln. euros which accounts for 0.7% of the GDP. As you see, Azerbaijan’s support program is quite weighty and large-scale as compared with other countries”.
V. Gasimli added that in order to decrease impact of global shocks on Azerbaijan, the government’s support program will cover the 4 damaged sectors of economy and the 20 affected areas of activity. The working group led by the Economy minister has assessed the damage caused to the sectors of economy at three levels: the mostly, significantly and minimally damaged sectors: “Such approach is significant in terms of fairness and targeted nature of the support program, as well as efficient use of resources. In this framework, the 9 projects are being developed now. In the first place, it is worth mentioning the program covering 44 thousand entrepreneurs and 304 thousand hired employees. It should be taken into consideration that as 915 thousand hired employees from the total of about 1.6 million hired employees in Azerbaijan already work in public and oil sector, they receive thair salaries regularly. It should be taken into consideration that as 915 thousand hired employees from the total of about 1.6 million hired employees in Azerbaijan already work in public and oil sector, they receive their salaries regularly. The government will provide support for payment of salaries of 304 thousand hired employees from the remaining 640 thousand hired employees. Meanwhile, the salary fund of the entrepreneurial entity will be supported by the government depending on the extent of the damage sustained by an area of activity. Of course, in such case, the main criteria will be at the level of AZN 712 taken as the amount of the average salary”.