Government of Azerbaijan to raise inflation forecasts

The Azerbaijan Economic Development Ministry intends to introduce changes to the forecasts of macroeconomic indicators for 2008 by results of the first half of the year, said Economic Development Minister Heydar Babayev.

He noted especially the inflation forecast will be raised as the current one did not take into account the situation on the world markets and growth of the state budget in the second half of the year.

"It seems that the budget should not grow so rapidly, but here are some social issues, as we can not reject building hospitals, roads and other infrastructures due to the threat of inflation or heavy absorption of internal funds. Therefore, we have to choose between high inflation and continuation of the investment policy", considers the Minister.

Babayev said other changes in the macroeconomic forecasts, in particular, GDP growth, will also be connected with correction of budget indicators for 2008.

/Day.Az/