(MENAFN- AzerNews) By Sara Ganjiyeva
Azerbaijan has achieved unprecedented development in the last 30
years. Azerbaijan's GDP increased 175 times, and GDP per capita
increased 130 times. However, this development was achieved mainly
due to the income from oil contracts.
Despite all these developments, Azerbaijan previously suffered
from the Dutch Disease, like many oil-producing countries in the
world. The countries suffering from Dutch Disease can be vulnerable
to many international threats. The COVID-19 pandemic has proven
this once again. Therefore, the state of Azerbaijan has taken a
number of measures to diversify the economy. As a result of these
measures, the share of oil in Azerbaijan's exports fell to 50
percent in 2022.
Speaking to Azernews Economist Parviz Heydarov noted that after
gaining independence, Azerbaijan took the oil factor as the main
measure in order to restore the country's economy, to ensure the
arrival of foreign currency to the country. The signing of the
Contract of Century by the National Leader Heydar Aliyev played a
great role in the development of the country.
“Whatever achievements Azerbaijan has had in the development of
the country's economy in the past, it was due to the revenues
obtained from that agreement. The oil field is a field that has a
boom period, a peak period, and a downturn period. We experienced a
period of growth after 2010. After that was considered the peak
point. For more than 10 years, we have been experiencing a period
of declining production in the oil field, but today, if we look at
the size of the Azerbaijani budget and compare the population with
the 1990s, we have to compensate for the decreasing income. In
order to maintain the sustainability of economic development, we
need to achieve the development of the oil sector. It is true that
the projects related to the gas field in recent years, the start of
gas export of Azerbaijan to Europe promise new currency flows, but
the price of gas is lower than oil, so it would be absurd if we
rely on gas. In 2015, the sharp drop in the price of oil in the
world markets led to the 2-fold devolution of the manat. After
that, it was proven how important the development of the non-oil
and gas sector is. Starting from 2016, new steps were taken in the
oil and gas field. At present, our potential in the oil and gas
field has expanded. "Azerbaijan has started exporting non-oil and
gas products,” the economist said.
Parviz Heydarov pointed out that for the first time in
2022-2023, oil made up 50 percent of the total exports of the
country and gas comprised 40 percent. He stressed that the
diversification of Azerbaijan's oil and gas exports and planning of
energy exports in new sectors is a positive indicator of the
development of the country's economy.
Besides, one of the notable aspects of this diversification is
Azerbaijan's ambition to export its electricity to Europe. By
venturing into renewable and alternative energy sources, the
country aims to establish itself as a major player in the global
energy market. This forward-thinking approach not only promotes
environmental sustainability but also positions Azerbaijan as a
dynamic contributor to the evolving landscape of international
trade and energy cooperation.
“The focus on the Green energy field is related to the depletion
of energy resources. Investing in green energy is only appropriate
if the natural resources are available in the event of oil and gas
depletion. The agrarian field, agriculture, agricultural products
processing industry, and tourism are good development areas for the
future. We have enough agricultural processing plants in districts
of Azerbaijan. Our liberated territories are also an additional
contribution and potential to tourism. If this area is given
attention, it can become a good development sector for the future,”
the economist added.
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