“According to our calculations, Azerbaijan’s economy will lag 1% in 2017, GDP will increase 1.8% in 2018. If the oil price is above $50, Azerbaijani government can refuse tight economic regime and increase capital investment. This will accelerate restoration of the economy”, he said.
Along with this, the Assistant Vice President added that restructuring process of International Bank of Azerbaijan’s liabilities may slow the restoration: “There is a lack of manat liquidity in the banking sector. This restricts the lending. So, interest for lending in USD is at very low level”.
He said that Central Bank of Azerbaijan delayed manat devaluation: “Azerbaijan’s neighbours and main trade partners devalued their currencies timely. In autumn 2016, Azerbaijan tightened monetary policy. In other words, the monetary policy was tightened a year after the devaluation. This is considered a delayed step”.