Vusal Qasimli, Executive Director of the Center for Analysis and Communication of Economic Reforms (CAERC), provided details on the Azerbaijani government’s actions to mitigate the impact of global shocks on the country.

Following the collapse in oil prices and the global crisis triggered by COVID-19, the government, under the directive of President Ilham Aliyev, identified key policy priorities. These measures fall into two groups: first, preventing the spread of COVID-19, and second, reducing the impact of the global economic crisis on Azerbaijan.

For public health, the Operational Headquarters under the Cabinet of Ministers is working to protect citizens’ health. A dedicated Action Plan has been approved, and intensive cooperation is ongoing with the World Health Organization (WHO) to prevent the spread of the virus and ensure the effective implementation of all recommended preventive measures.

Economic measures focus on regulating supply and demand in the currency market, maintaining the stability of the manat, controlling inflation, and preventing speculative activity in markets. Full deposit insurance will also be resolved in the near term. Currency auctions conducted this week at the Central Bank, with participation from the State Oil Fund, have fully met market demand. Maintaining the manat’s stability is supported by the social reforms implemented in 2019, strengthening their effect.

The government has issued instructions for the full execution of the state budget, optimizing spending, and ensuring effective use of funds. Social programs are under special supervision, including targeted social assistance, public works, self-employment, rental housing, compulsory health insurance, and social mortgage initiatives. Social spending in the state budget this year is projected at 10.4 billion AZN, an increase of 2.6 billion AZN or 33.5% compared to last year.

Following the President’s guidance, the private sector is expected to actively maintain existing jobs and create new ones. Measures to expand support for small and medium-sized enterprises and increase investment in the country are aimed at ensuring sustainable economic growth. In the first two months of this year, capital expenditures increased by 12.7%, and the government aims to maintain this pace.

The government’s plan also includes support for sectors most affected by the global crisis, especially tourism, which is the largest non-oil revenue-generating sector. Stability will also be ensured for systemically important economic enterprises. Forecast scenarios for oil price effects on the balance of payments have been prepared, with measures in place to maintain overall balance.

Finally, cooperation with the private sector, civil society, and international organizations is planned to enhance the effectiveness of the government’s anti-crisis measures.