Azerbaijan ranking 99th for the level of economic freedom

According to Day.Az, this reflects notable improvement in business and labor freedom. Azerbaijan is ranked 17th out of 41 countries in the Asia-Pacific region, and its overall score is slightly less than the world average.

According to the rating of the authors, Azerbaijan's economy continues to undergo transformation and restructuring. In addition to its openness to global trade, relatively moderate taxation and government spending have been vital to the transition to greater economic freedom. In conjunction with efforts to moderate spending, the government intends to implement further reforms to reduce the non-oil fiscal deficit.

Among the positive factors, the rating lists the fact that business takes not long to establish. "Azerbaijan's labor market is relatively free, with flexible employment regulations as a result of recent reform measures. The non-salary cost of employing a worker is moderate, and dismissing a redundant employee
is not burdensome", the rating says.

At the same time, according to the rating, Azerbaijan still faces substantial challenges, particularly in implementing more institutional reform measures. Property rights and freedom from corruption remain weak, and lingering government interference and control, both formal and informal, hurt overall monetary stability and hinder foreign investment.

Economic diversification and the privatization of large-scale enterprises have slowed in recent years but should continue to improve long-term competitiveness,says the rating.

"Oil and gas revenues and foreign direct investment have been increasing, but the country faces significant environmental issues common to its Caspian Sea neighbors. Overfishing of sturgeon has threatened the production of caviar", said in the rating.

A weak legal regime, arbitrary customs administration, regulatory conflicts of interest, subsidies, export restrictions for some goods, and customs corruption add to the cost of trade. Ten points were deducted from Azerbaijan's trade freedom score to account for non-tariff barriers.

The authors of the report consider that Azerbaijan has a high income tax rate and a moderate corporate tax rate. As a negative factor, they state that power supply and water companies remain in state hands.

Thus, ten points were deducted from Azerbaijan's monetary freedom score to adjust for price-control policies.

/Day.Az/