Economic growth started to subside in Azerbaijan from end of March in connection with pandemic

Economic growth started to subside in Azerbaijan from end of March in connection with pandemic
  • Clock-gray 16:54
  • calendar-gray 04 August 2020

“On the backdrop of the mentioned risks and challenges, the international institutions have also announced their forecasts”, said the deputy minister of Economy Sevinj Hasanova during discussion of the draft law of the Republic of Azerbaijan about making a change in the Law of the Republic of Azerbaijan “about state budget of the Republic of Azerbaijan for 2020” at the meeting of the Economic policy, industry and entrepreneurship committee of the Azerbaijani Parliament held today, APA reports.

She said it is forecasted that the economic growth of the world economy will decrease in the current year:

“The emerged complex situation has been kept under control from its very first day by instructions of the country’s leaders. The wide plan of measures approved by the government is also one of such instructions. Based on the change made in the tax and social legislation, the tax discounts have been made for entrepreneurs, the temporary taxation system has been applied”.

She noted that the situation in the current year is not comparable with previous years: “Both demand and supply crisis have been experienced together. Currently, the keeping of oil price in the volume of $40 has been achieved. All factors are based on forecasting. Due to the aforementioned reasons, the economic growth started to subside from the end of March. The decline further intensified during April-May-June. 2.9% decline was observed in the oil sector. The decline is also observed in the investments. 47.9% decline was also observed in the tourism sector that suffered worst of all from the pandemic. In these conditions, the government has created conditions for protection of macroeconomic stability in the purposeful way. The serious restricting measures are being implemented for protection of health of the country’s population in connection with the pandemic. The applied measures bear administrative character. The reaction of the economy is drawn to the back plane. We should further expand our analyses in this area. In the current year, we conducted 2 surveys among 450 entrepreneurs. And we have updated our forecasts just on the basis of these surveys”.

Firuza Vahid

Other news