Aliyev praises 2007 growth

President Ilham Aliyev has described the year 2007 as successful for the Azerbaijani economy.

Addressing a cabinet meeting dedicated to the outcomes of last year and objectives facing the country in 2008, Aliyev emphasized that the country’s Gross Domestic Product grew 25%. Thus, economic growth in Azerbaijan has made up 96% in the past four years as a result of economic reforms, an unprecedented development around the world. Industrial production increased 24% in 2007.

The president continued that a lion’s share of the energy projects implemented in the country has been completed, which indicates that immense funds have already been channeled into the oil and gas sector and that capital investments are about to begin dwindling. Nonetheless, investments in the national economy exceeded $6 billion in 2007, with most of the funds made up by domestic investments.

“This indicates that Azerbaijan’s internal opportunities are expanding and investments being made by both the state and the private sector are considerably rising,” the head of state said.

He noted that the country’s budget spending has increased 10 times in the past four years. The figure was set at $12 billion for 2008. “This grants the country economic independence, opens up additional opportunities and strengthens its regional position. Political and diplomatic, and, undoubtedly, energy-related and economic factors, are playing a great role in this.”

Touching on socio-economic aspects of Azerbaijan’s development, President Aliyev cited the successful implementation in 2007 of a social assistance program covering 78,000 families. The average amount of aid per family makes up $100.

“Great success has also been achieved in reducing poverty, and we can say with pride that a lot of activities were undertaken in this area last year. Whereas 49% of the population lived in the conditions of poverty in 2003, the indicator decreased to 16% as of January 1, 2008. I am confident that as a result of the measures to be taken this year we will attain a further reduction of the poverty level. There will be no low-income layers of the population in Azerbaijan. I am sure of this and will do everything possible to make this happen.”

Aliyev noted that the state program on socio-economic development of the regions expires in 2008. Most of the objectives outlined in it have already been met.

“We have implemented the five-year program within just four years. As of today, 600,000 jobs have been opened in Azerbaijan in the past four years, including 460,000 permanent positions. In 2007 alone, 145,000 jobs were created, including 105,000 permanent ones,” the president concluded.*