“Growth prospects are positive in the near term. With expanding public investment and social spending, the nonhydrocarbon sector is expected to increase by 4 percent in 2018,” said Mohammed El Qorchi who led an International Monetary Fund (IMF) team to Baku from November 30 to December 14 to hold discussions in the context of the 2018 Article IV Consultation.

“Notable improvements have been made in social protection and labor markets, including a new unemployment insurance fund, implementation of pension reform, and a shift from passive to active labor market programs,” he said in a statement. He said the economy of Azerbaijan stabilized in 2017 thanks to active macroeconomic policies and stronger oil prices. “The nonhydrocarbon economy started to expand mainly due to reviving service and agriculture sectors. Higher oil prices, better nonhydrocarbon exports, and import compression have also restored the current account surplus.”