In the first half of this year, economic growth in Azerbaijan restored reaching 2.1 percent. It was reported by Executive Director of the Center for Analysis of Economic Reforms and Communication Vusal Gasimli noting that the growth in the non-oil and gas sector was 16.6 percent, 8.9% in crop farming, 2.4% in livestock, 5.5% in information and communication services, and 1.7% in retail trade turnover. He said, “While the growth of the industry in the world is projected at 3.5 percent this year, the growth of the non-oil industry in Azerbaijan by 16.6 percent is praisable. The non-oil industry is the main driver of economic growth in Azerbaijan. In general, the non-oil sector grew by 5.1 percent. During this period, the exchange rate of the manat remained stable, and inflation reached 4.3 percent in the corridor set by the Central Bank. Although the increase in world market prices has put pressure on import inflation, price stability has been maintained through the use of exchange rates, money supply, and interest rates. The surplus of both the state budget and the current account deficit, as well as the fact that strategic foreign exchange reserves exceed the state's foreign debt by six times, can be considered fundamental foundations of macroeconomic stability. Exports in the non-oil sector increased by 25.8 percent in the first five months, and state budget revenues through the State Tax Service increased by 9.5 percent in the first six months. Effective coordination of fiscal and monetary policy ensures macroeconomic stability”.

V.Gasimli said that with the prospects of reintegration of Karabakh and the opening of regional communications, as well as the definition of new requirements for the country's defense and competitiveness, the economy of Azerbaijan is on the eve of a wide and quality change. According to his words, “The scope of demining has already expanded in Karabakh and the process of modern urbanization is in full swing. Also, "smart living" settlements are being built, and agribusiness, mining, construction, transport and logistics, services are being restored. The economic regions of Karabakh and East Zangezur, established in the liberated territories, are important in terms of deepening regional specialization, increasing the efficiency of governance, and restoring historical justice. Particularly, Eastern Zangezur with Zangezur Corridor prospect can bear great political, economic and historical importance as a transport and logistic hub.”

V.Gasimli noted that after the crisis, the financial and banking sector of Azerbaijan continues stabilizing with a high level of liquidity and capital adequacy. From the beginning of the year, credit investments increased by 3.3 percent, deposits by 7.7 percent, household deposits by 5.3 percent, and net foreign assets of banks by 10.3 percent. This year, the main directions of monetary policy include ensuring the stability of the manat and prices, the effectiveness of the monetary policy, and the stability of the financial sector, as well as supporting the recovery of the economy in the post-pandemic period through the use of regulatory benefits”, said V.Gasimli.

Moreover, Vusal Gasimli told that post-conflict developments were highly evaluated internationally. “This year, Azerbaijan has moved from 34th position to 28th in the Doing Business report, from 44th place to 38th in Economic Freedom Index report, and from 55th to 40th in Global Cybersecurity report. IMF mission considers that by shifting to rapid measures, Azerbaijan has mitigated the effects of external shocks. From now on, the goal of economic policy should be to develop the private sector, further improve the business environment, continue reforms in governance and transparency, as well as deepen economic diversification and increase the economy's resilience to shocks by improving access to finance,” concluded V.Gasimli.