IMF announces list of challenges faced by economy of Azerbaijan

The head of the IMF mission to Azerbaijan, Nadeem Ilahi told reporters that it is necessary to keep inflation at low levels, especially in the case of increased pressures, leading to the overheating of the economy at a press conference in Baku, 1news.az reports.

Among other measures Ilahi said that it is important to maintain financial stability in combination with measures aimed at solving the problems of the banking sector, as well as reduce dependence on oil production and aim at growth based on the self-sustaining private sector.

The head of the mission stressed that a large-scale fiscal expansion provided by the state budget for 2012, could lead to the overheating of the economy and inflation, since the volume of production in the non-oil sector is expected to reach its potential in the end of 2011.