Vusal Gasimli: "There will be two stages in fighting pandemic"

According to the International Monetary Fund's (IMF) forecast, Azerbaijan's economy will shrink 2.2% while the global economy will drop 3%, the economy in the Middle East and Central Asia will fall 3.9% in 2020, said Vusal Gasimli, Executive Director of the Center of Analyses of Economic Reforms and Communication.

He says Azerbaijan is among the top three countries of 11 oil-producing countries in the Middle East and Central Asia with the least damage from the pandemic: 'Azerbaijan also reduces output within OPEC+ and loses from low oil prices. However, the rapid development of the non-oil industry and government's anti-crisis steps under the leadership of President Ilham Aliyev, the economic recession is prevented effectively in the country. According to the IMF's economic growth forecast before and after the pandemic, Azerbaijan is among the countries with the least difference. Because the budget of struggle against the pandemic makes up AZN 3.5 billion, and anti-crisis measures have been taken timely. At the same time, more than AZN 3 billion was spent to stabilize the exchange rate of manat. In the post-Soviet space, only the Azerbaijani government took the main risks by providing stabilization of manat and preserved micro stability. By the way, currencies of all oil-producing countries, which had full shifted to a floating regime, devalued.'

Gasimli noted that there will be two stages in fighting the pandemic: 'Currently, the deepening of the crisis is being prevented, and stability is preserved. At the second stage, restoration of economy will start. Cheap finance, light tax burden, and access to markets creating demand is needed for this.'