APRIL 2 2015 (The Conway Bulletin) – Azerbaijan’s Central Bank chief, Elman Rustamov, said that he believed the Azerbaijani government budget for 2016 would be based on oil costing around $50 per barrel, media said.
This is significant as Azerbaijan struggles to make a profit if oil prices are stuck at around $50 per barrel.
Effectively, then, Mr Rustamov is predicting the problems facing Azerbaijan’s economy will continue into next year.
At the end of last year Azerbaijan’s government had to cut various projects because oil prices had collapsed. Azerbaijan’s economy is hugely dependent on energy. International advisers have said that the government needs to concentrate on diversifying its economy away from oil and gas. Reform has been slow, though.
ENDS
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(News report from Issue No. 226, published on April 8 2015)
