EBRD: "Azerbaijan still depends on energy sources"

The due statement is contained in the annual report of the head economist of the European Bank for Reconstruction and Development Eric Bergloff.

"Today Azerbaijani economy strongly depends on energy sector and therefore, is still vulnerable before energy crisis. Economic diversification is needed for stable development in the long term perspective.

The extreme growth of state expenses poses a threat to stability of state finance in the middle term perspective, as oil production is expected to decline beginning from 2013", Bergloff said.

He considers that restructure, especially in electric energy sector, anti-monopoly and anti-inflation measures, as well as issues of a long-term approach to budget expenses and insufficient transparency and openness of financial sector require a special attention.

Bergloff considers it necessary to raise possibility of appearance of foreign banks on the banking market and accelerate privatization of large state establishments and development of a private sector.

The EBRD forecasts inflation rate to be 16% this year.

/Day.Az/