Azerbaijani economy is still on the "oil needle"

ArmInfo.Over the past 5 years, the GDP of Azerbaijan dropped from 74 billion 240 million dollars to 46 billion 900 million dollars. And that means a decrease of more than 27 billion.  

According to economist Natik Jafarli, whose words are cited  by TURAN, in neighboring Armenia, the GDP increased by about $ 800  million over this period. The economist believes that the sharp  decline in Azerbaijan over these 5 years is due to the drop in oil  prices and double devaluation.  "After the devaluation, the manat  fell sharply and the GDP specified in dollars also began to decline.  The decline in the oil price accelerated the decline in the GDP even  more, and compared to 2012-2013, the GDP decreased 3-fold," he said.

Jafarli added that the reduction in the GDP demonstrates the extent  to which Azerbaijan depends on the oil factor. "There will be  fluctuations in the GDP in the country. Whenever the price of oil is  high, the GDP will also rise. Otherwise, the GDP will decline, while  Armenia and Georgia, which do not have any resources will be ahead of  us." According to the economist, the Azerbaijani authorities must  take serious steps to remedy the situation, and if there is political  will, legal and political reforms are carried out, and management  changes, then in a few years it will be possible to eliminate  dependence on oil.  According to Azerbaijani officials, the rate of  economic growth in the country in 2018 was 1.4%, and in 2017 - 0.1%.   Despite the statements by the authorities about steps to diversify  the economy and reduce oil and gas dependence, in the non-oil sector  the increase in the GDP was 1.8%, whereas in 2017 this figure was at  the level of 2.7%.