Expert: Azerbaijan was late with correction of manat rate

Baku. 11 May. REPORT.AZ/ "Azerbaijan is one of the few countries, for which we have reduced the forecast compared to six months ago".

Report informs, chief economist of the World Bank for Europe and Central Asia Hans Timmer said.

According to him, Azerbaijan lost 25% of purchasing power due to decline in oil prices: "It is necessary to create new jobs, give priority to export-oriented products. Being in Baku last year I raised 5 main issues. First, we need to review the monetary policy and implement a flexible exchange rate policy. The exchange rate must be adapted to those of other countries. Azerbaijan was late with the correction of manat rate and this negatively affected the economy”.

"The second issue concerns the recovery of the banking sector, which is very important in the era of falling oil prices. The banks need to recover not only at the expense of the budget, but also through restructuring."

According to him, fiscal stability is ensured in Azerbaijan: “The burden of economic shocks should be shared evenly among the population. Moreover, Azerbaijan should open borders for trade. In particular, conditions should be created for start-ups”.