Central Bank Chairman Elman Rustamov is forecasting double-digit growth in Azerbaijan over the next 10 years.
He told parliament today that the balance of payments surplus would reach $14bn this year, while the country's total currency stocks are approaching $42bn,
APA reported.
“We don’t see any macroeconomic risk for Azerbaijan’s economy in the medium term. According to our calculations, Azerbaijan will have a double-digit rate of development – 10-12% growth – in the next 10 years.”
He said that achieving this growth would require foreign investment and suggested reducing taxes in order to attract more investment.
"The flow of foreign investment to Azerbaijan requires a lower tax burden than than in the countries where the capital comes from. Azerbaijan is in 95th place in the world in this respect while Kazakhstan and Georgia lag behind. I think that the tax burden needs to be reduced and at the same time the tax burden should be redirected from production to consumption. In neighbouring Turkey there is a heavy tax burden on jewellery, decorative items and cars. Social taxes are high too. We think that social taxes should be competitive."
Commenting on the draft state budget for next year, Rustamov said that it had been drafted very well.
“It has resilience. Budget expenditure is 37% of national product and this is the G20 limit. The base price set for oil is conservative - the IMF is forecasting $102. Social programs are continuing. We are not stopping any social program or slowing the tempo."
Azerbaijan's draft budget for 2012 sets the price of oil at $80 per barrel.
The Central Banker told parliament it was important to keep a lid on inflation.
"We need to try to keep inflation no higher than 5%."
He said it was important to keep the manat exchange rate low to promote exports.
APA
