Four working groups established in accordance with the Presidential Decree to mitigate the negative impact of the coronavirus crisis on Azerbaijan’s economy are operating at full capacity. Vusal Gasimli, Executive Director of the Center for Analysis of Economic Reforms and Communication (CAERC), stated that the first step is for the Working Group, created under the leadership of the Minister of Economy to assess the pandemic’s economic impact, to submit its recommendations in due course:

“Sectors affected by the pandemic have been initially identified, and criteria are being developed for compiling lists of affected entrepreneurs. Twelve sectors have been preliminarily recognized, including tourism, public catering, trade, transportation, and others. Objective analyses and feedback from business owners have been taken into account. Support mechanisms are being discussed to address challenges entrepreneurs face under global shocks, including tax, customs, rent, credit, and related areas.

Under the impact of the pandemic, the global economy has entered a recession, and the end of the crisis is uncertain. Therefore, support measures for Azerbaijani businesses will not only cover the short term but also the medium term. The national economy must maintain resilience in the short term while ensuring sustainable development in the post-coronavirus period. Despite negative global shocks, sectors such as petrochemicals, gas chemistry, agriculture, and information and communication services have shown double-digit growth since the beginning of the year. Natural gas production is also expected to increase rapidly this year. These sectors can generate a multiplier effect, supporting the development of other areas along the value chain. In this way, economic contraction will be mitigated not only through struggling sectors but also through those that remain resilient.

Social protection for employees in sectors affected by the pandemic will be strengthened, and efforts will be made to prevent mass layoffs in impacted enterprises. Employment initiatives will also be implemented. Self-employment, paid public works, and targeted social assistance programs will be expanded. Additional measures will be taken to protect low-income groups from the crisis.

It is important to note that the Azerbaijani government is addressing global shocks with oil priced below 30 USD per barrel—approximately half the level projected in the budget. Maintaining macroeconomic stability under these conditions remains a top priority for the government. A Working Group, established under the leadership of the Chairman of the Central Bank, will evaluate potential negative impacts on the banking sector and the macroeconomic environment over the next two months. Based on this assessment, additional measures will be taken to stabilize the manat and control inflation.

For the first time, the global economy faces such a deep recession simultaneously with a pandemic. Under the leadership of President Ilham Aliyev, Azerbaijan’s economy is determined to overcome this challenge successfully and enhance its competitiveness. Achieving this requires strong cooperation between the state, businesses, and the public.”