‘The year 2017 will be remembered with conformation of national economy to the new oil prices, restoration of macroeconomic stability and transition to post-oil period’, Chairman of the Central Bank of Azerbaijan Elman Rustamov said in the discussion of drafts of state and consolidated budgets for 2018 at the plenary meeting of the parliament on November 21.
According to him, close coordination of significant political directions within the macroeconomic stability framework formed by the Financial Stability Board allowed to achievement of initial results in the first quarter of 2017 and their development in the further period. ‘The task lying ahead was very complicated. Decline of oil price threefold, loss of export revenues in the amount of more than half of total products are a serious challenge for any economic system. External shocks had created serious risks for sustainability of stability and mid- and long-term durability of national economy. Complex macroeconomic measures, close coordination of monetary and fiscal policy, shift to quick exchange rate regime allowed balancing in foreign balance of payment of the country. Surplus of the balance of payment was restored in the current year, AZN 1.1 billion-surplus emerged in the current operations account. Of course, rising oil prices also played role in improvement of the balance of payment. However, this was caused by not only the rising oil price. Volume of annual import is expected to decline more than twice to $6.5 billion in 2017. Strengthening of non-oil export in parallel with the decline of import affects the balance of payment. Non-oil export approximately rose 31% in the nine months. Along with the trade balance, service balance also demonstrated positive results. Positive balance emerged in the tourism services. Consequently, the strategic reserves increased 12%, including Central Bank’s reserves soared 31% above $42 billion’, he said.