Azerbaijan: Non-Oil Income Expected to Drive Azerbaijan's Economic Growth in 2010

Oil dollars may have helped Azerbaijan weather the global financial crisis, but non-oil-related revenue is expected to account for much of the country's predicted 2.7-- percent economic growth for 2010, the International Monetary Fund (IMF) announced on March 3.

The Azerbaijani economy has withstood the impact of the global financial crisis well, but has not been immune to it, the Fund found. A dip in outside demand for Azerbaijani oil caused export revenues to shrink by 30 percent in 2009. In 2010, oil-related economic activity is expected to expand by only 1.3 percent; non-oil sectors, by contrast, are expected to post a 4.2-percent growth rate.

The country's Gross Domestic Product expanded by an impressive 9.3 percent in 2009, according to the IMF.

The Fund underlined the need for further diversification of Azerbaijan's economy, but praised Baku for an effective fiscal policy and conservative budget planning that, along with oil sales, helped the Caucasus state stand resilient to the crisis shockwaves that pummeled Azerbaijan's neighbors.