Azerbaijan faces hard search for new growth drivers
Thursday, April 13, 2017
Significance
The government wants to develop non-hydrocarbon sectors to offset the growth and fiscal problems stemming from lower global oil prices. The economy contracted in 2016 for a second consecutive year. Fiscal consolidation and currency devaluation have added to contractionary effects.
Impacts
- Efforts to clean up the banking sector will absorb fiscal resources.
- Confidence in the national currency remains fragile.
- High levels of dollarisation complicate the execution of monetary policy.
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