Azerbaijan, Baku, April 19 / Trend N. Ismayilova /
Today, the Central Asian region shows positive economic growth after the crisis in 2009, Asian Development Bank (ADB) economist on region Tatsuji Hayakawa said during the presentation of the report "Asian Development Outlook - 2011".
"The 6.6 percent growth was observed in eight countries of Central Asia in 2010," he said. In general, the Asian region, which includes 45 countries, showed a 9-percent-growth. Many governments have begun to implement the anti-crisis policy. It resulted in economic recovery."
He said that the average inflation rate for Central Asia in 2010 amounted to 7.5 percent. According to the bank's forecasts, it will hit 8.2 percent in 2011, reducing by 6,6 percent by 2012.
"Increasing the rate of inflation is stipulated by the increase in food prices," he said. However, according to ADB's forecasts, they will decline in 2012. It will affect the reduction of inflation in the region."
ADB recommends the countries of the region with a weak state budget to enhance fiscal consolidation. Accelerating the recovery of the banking sector is also important.
"According to our research, the main problems of the region that must be resolved are the diversification of exports, the development of the private sector, the need for good infrastructure" he said. ADB also recommends the countries of the region to pursue a policy of active regional cooperation and trade promotion."
ADB economist Naila Veliyeva said that the non-oil sector of Azerbaijan's economy is expected to increase for the next two years. It will cause the increase of diversification of the economy.
"ADB sees the prospects in the development of such sectors of the economy as agriculture and tourism, which have significant potential," he said.
The growth of oil and gas sector is expected to hit about 3-4 percent, as the development of this sector forms the basis for rapid expansion in subsequent years.
He said that the government plans to invest $4.2 billion in non-oil sector in 2011. It will cause the rapid growth in the construction sector with positive effects on other sectors of the economy.
According to the bank's forecasts, the growth of non-oil sector of Azerbaijan is provided at a level of 8 percent in 2011-2012. GDP growth is projected at 5.8 percent in 2011 and 2012. According to the forecasts, inflation is projected to reach 7.5 percent in 2011 and declined by 7 percent in 2012. The current account surplus is expected to hit 27.8 percent of GDP in 2011 and 25 percent - in 2012.