Minister: 2.8% recession expected in Azerbaijan in 2016

Baku. 30 November. REPORT.AZ/ GDP in Azerbaijan is expected to be 58.8 bln AZN by the end of the year, which means 2.8% recession. 

Report informs, Finance Minister Samir Sharifov said at today's joint meeting of committees gathered to discuss the 2017 state draft budget. The Minister said that continued macroeconomic stability has been set as main target and budget cuts will further continue.

According to him new economic turmoils, problems and strategic challenges facing the country were taken into account and some financial support has been established for the continuation of social policy.

"During the first 10 months of this year GDP was in the amount of 49.2 bln AZN (decline of 3.7%).

The reasons are decline in foreign trade, big losses in banking sector as a result of high dollarization, serious decline in lending. As a result, balance of payment faced deficit for the first time since 1998", the minister said.

Chairman of Economic Policy, Industry and Entrepreneurship Committee Ziyad Samadzade said there were delays in presenting the state budget this year and there are objective reasons. 

According to him, the budget reflects the realities and envisages the creation of powerful resource for the future.