Republic of Azerbaijan: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Republic of Azerbaijan
IMF Staff Country Reports, September 18, 2019
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- Republic of Azerbaijan: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Republic of Azerbaijan
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Bibliographic details
- Published: September 18, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513514376.002
Economic outlook and near-term projection
- The economy is continuing to recover from a banking crisis and recession.
- Economic growth is expected to reach 2.7 percent in 2019 on strong hydrocarbon production and robust domestic demand, benefitting from new spending measures.
Fiscal stance and consolidation
- Recommendation: Gradual and growth-friendly fiscal consolidation is needed to strengthen intergenerational and precautionary buffers while mitigating the adverse impact on the economy.
- Possible consolidation levers:
- Prioritizing and improving the efficiency of spending.
- Rationalizing tax policy.
- Improving revenue administration.
Structural reforms to support growth and private sector activity
- Reduce administrative burden for businesses.
- Encourage competition.
- Strengthen governance and transparency to:
- Reduce the cost of doing business.
- Foster entrepreneurship.
- Attract foreign capital.
Human capital, social protection, and public investment
- Prioritize investment for healthcare and education.
- Improve the efficiency of public investment in these areas.
- Better target social protection to nurture human capital and improve productivity.
Governance, data, and policy credibility
- Address governance weaknesses to reduce vulnerabilities to corruption.
- Pursue more integrated policies, along with better data availability, to support decision making and credibility, and attract investment.
Source: Republic of Azerbaijan: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Republic of Azerbaijan
Content in this bundle
- 1. New Spending Packages