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Azerbaijan announces four strategic targets of economy

09 December 2016 15:34 (UTC +04:00)

According to the map, the decline in oil price since 2014 and economic growth as a result of the economic crisis in the trading partners, institutional and structural challenges, balance of payment and non-oil budget deficit, processes in financial and banking system led to switching to a new economic development approach. By focusing on the new “vanguard” sectors which will ensure sustainable development, the structure of the economy will be rebalanced through more increase of commercial sector than non-commercial sector, processing than production, private entrepreneurship than state entrepreneurship, sectors basing on high technologies than low technologies, high skilled labour than low-skilled labour, high-income markets than low-income markets, high value-added sector than low value-added sector. The structure of the national economy will be renewed through improvement of business atmosphere, conduction of new policy within the mid=term expenditures strategy, normalization of financial and banking system and keeping monetary policy on the floating rate regime, as well as expansion of accesses to the foreign markets.

Therefore, four strategic targets have been chosen within the perspective of national economy. As a result of these targets and implementation of road maps on 11 sectors, the sustainable economic development will be possible by ensuring the balance between real and financial sectors. According to the first strategic target, the fiscal sustainability in Azerbaijan will be ensured and the monetary policy will be conducted on the basis of floating rate regime. Conformation of fiscal and monetary policies will ensure macroeconomic stability. The second target envisages ensuring economic dynamism through increase of effectiveness in state-owned legal entities and privatization. The third target is related to development of the capital which will provide development of labour market in accordance with the perspective of the national economy. the fourth target means improvement of business environment.