International Monetary Fund: "Inflation is still threatening to Azerbaijan"

This are the results of the annual review of Azerbaijani economy, released by the International Monetary Fund.

According to ITAR-TASS, in line with the document, in 2007 the real GDP growth in Azerbaijan reached 23%. Oil sector, rising by 27%, remains the main locomotive.

The indicator was no less significant in the remaining spheres, including construction, trade and communications (about 12% in general).

As is noted, the unemployment and poverty level has reduced significantly and per capita GDP topped $3,500. At the same time inflation rate reached 19.5 through 12 months as of late 2007.

Turther prospects of Azerbaijani economy do not create concerns for the fund. The real GDP growth, again at the expense of oil revenues, is expected at the level of 19%, it should make about 10%, oil exclusive.

The payment balance proficit is expected to be 36% of GDP against 29% in 2007.

As is forecasted, the volume of reserves, including the oil fund, will reach $24 bln by the end of 2008, which is thrice as high as the indicator of the previous year.

At the same time, "continuation of financial-budget expansion will stimulate internal demand, while inflation will remain high in 2008", state the IMF experts.

/PRIME-TASS/