The Azerbaijan State News Agency

POLITICS

National Herald Tribune: Azerbaijan a Land of Economic Opportunities

National Herald Tribune: Azerbaijan a Land of Economic Opportunities

Baku, December 25, AZERTAC

Pakistan`s National Herald Tribune newspaper has published an article headlined “Azerbaijan a Land of Economic Opportunities”.

Written by Group Editor of National Herald Tribune newspaper and member of Board of Experts of Center for Global & Strategic Studies (CGSS) Riaz A. Malik, the article reads:

“The year 2020 was full of unexpected happenings and we still survive the coronavirus pandemic. Nevertheless, the necessary steps taken by the Azerbaijani Government and President Ilham Aliyev made it possible to minimize the negative effect of this crisis in Azerbaijan.

In its course of economic development and modernization, Azerbaijan has positioned itself as a regional center of modernity, finance and high-tech projects, education and culture, from universities to sports, art galleries and museums. Azerbaijan has become a land of economic opportunities and in a very short time attracted international attention and investments. Brand “Made in Azerbaijan” has been built for decades on the basis of being a global business centre, perfectly located and commercially astute. A place with a long and successful history where it is safe to do business, where the business people really know and knew how to run successful companies.

The intensification of the current crisis saw the deterioration of many macroeconomic indicators around the world. Industrial output contracted sharply in many parts of the world. Commodity prices declined significantly towards the end of the year 2020. There was a sudden contraction in the volume of world trade. In this environment, forecasters have had to scale down their forecasts for output growth repeatedly.

As you are all aware, almost no county was in isolation of the "Global Storm" and of course, Azerbaijan was not an exception. Indeed, many financial systems around the world have been under extraordinary strain for the past year and the macroeconomic and human consequences of that crisis are becoming all too clear.

These events have raised many questions for policy-makers and for market participants about causes and consequences of the crisis but I think the most important one –from a practical point of view- is what are the countermeasures that governments can take to reduce the costs of the present crisis and it speed up the recovery path?

As with any large event in any field of human effort, it is never about just one thing. There were many causes of the financial crisis, some recent and some longstanding. I would like to focus on the misperception and impact of crisis on Azerbaijan.

Perhaps the most basic underlying driver of the crisis was the inherent cycle of human psychology around risk perceptions. When times are good, perceptions of risk diminish. People start to convince themselves that the good times will go on forever. When the cycle turns, risk aversion increases and often far beyond normal levels. We have observed how investors’ perception of risk changed in the years leading up to the crisis.

The effects of this boom-bust cycle of psychology are amplified when investors use leverage. Borrowing to purchase assets is lucrative when asset prices are rising, because all the upside beyond the interest costs goes to the investor, not the lender. However, when times are bad and asset valuations are falling, investors’ losses are magnified by leverage and investors cannot borrow in their own way to a good time forever.

As the crisis has unfolded, there are signs that international banks and other lenders have become more risk-averse and they have tightened lending criteria somewhat. The household and business sectors have also become much more risk-averse than in recent years. Some indicators of this change include higher household saving, and a shift from debt to equity funding by some firms. Their demand for credit has weakened as they have become more cautious. Together with those tighter lending standards, this has contributed to a slowdown in credit growth.

In this environment, the need for credible steps to restore the health of the financial system and businesses is crucial. In Azerbaijan, government has provided substantial support to financial institutions and market, especially when the signs of financial crisis start appearing. The central bank injected capital into banks and helped banks to reduce the risk in their balance sheets. Government is also providing macroeconomic stimulus through fiscal policy easing. On the other front, businesses need to be more efficient and able to cope with the new situation.

And since September this year, during 44 days, Azerbaijan has resolved the 30 years old problem of Karabakh.

In one word, Azerbaijan keeps ultimate objectives for the economy firmly in mind-sustained recovery to high levels of output and employment with price stability. Though the country is operating in a highly uncertain world economic situation, it will continue to adapt its policies as necessary to accomplish main objectives.

And, of course, all these in Azerbaijan were and are possible, thanks to its leader, President Ilham Aliyev.”

Share news on social media

Follow us on social network

Transit officials approve New York City traffic congestion fee

Azerbaijani weightlifters to fight for glory at 2024 IWF World Cup

Taha Ayhan: We want to share the story of the liberation of Shusha with the whole world

Hirshhorn at 50: ‘Revolutions’ offers an artistic journey through time, Arts innovations

Attacks in NYC transit jump a massive 50% as subway murders surge: stats

Protocol signed to implement Shusha OIC Youth Capital-2024 program

Pope appears in better health, praises Israeli and Arab fathers who both lost daughters in conflict

Latvian foreign minister resigns amid private flights controversy

Azerbaijan's Minister of Labor and Social Protection of Population meets with UNDP Resident Representative

Rediscovered Raphael masterpiece to be exhibited in French Basilica

Draft law on Corsica`s autonomy adopted. MP Josepha Giacometti Piredda protests describing it as “shackles”

China’s CATL to cut its EV battery costs by up to 50% this year, heralding a price war

UN chief applauds Türkiye's Global Zero Waste Initiative, calls for end to waste cycle

Azerbaijani ambassador meets with representatives of Egyptian media outlets

Türkiye ‘neutralizes’ 38 PKK/YPG terrorists over past week

Azerbaijani boxers claim 2 golds at Great Silk Way international tournament

Azerbaijani female boxers claim nine medals at Great Silk Way International Tournament-2024

From Matamela Cyril Ramaphosa, President of the Republic of South Africa

With 783 million people going hungry, a fifth of all food goes to waste, UN says

Trump leads Biden by 5 points in new national poll

Chairman of Azerbaijan’s State Customs Committee meets with Egyptian ambassador

Georgian Gov’t approves 2024-2025 climate change action plan

Guivami Rahimli: “…Azerbaijan’s aim is to transform the role of energy in international relations from fueling disagreements to oiling cooperation…”

Azerbaijani Ombudsperson meets with residents of Armenian origin in Khankendi

Seoul bus drivers go on general strike

Azerbaijan to pin hopes on seven female gymnasts at 35th Rhythmic Gymnastics International Grand Prix in France

Western Azerbaijan Community issues statement

Practical classes held with Military Institute’s cadets

Telescope shares clear image of Sagittarius A* black hole in Milky Way Galaxy

Artificial intelligence laboratory launched at Baku Higher Oil School for first time among higher education institutions in Azerbaijan

Election results confirm Bassirou Diomaye Faye's victory in Senegal's presidential race

Azerbaijani oil price declines in global markets

Oil prices surge in global markets

Moscow checks, discusses with Baku alleged arms deliveries to Kiev — MFA

Russian diplomat accuses France of intelligence operations in Caucasus

Childbirths in S. Korea hit another low in January

Azerbaijani delegation of Chamber of Accounts visits US

China opens WTO dispute against US subsidies to protect its EV industry

Aykhan Hajizade: We strongly condemn anti-Azerbaijani allegations in report prepared by group led by Rasmussen

Indonesia's Marapi volcano erupts

Türkiye says it will always ‘stand shoulder to shoulder’ with Pakistan in fight against terrorism

Obama, fearing Biden loss to Trump, is on the phone to strategize

Georgian PM, Parliament Speaker nominate national football team for Medal of Honour

Türkiye to host 2027 European Games

Passenger traffic at Baku Airport increased by more than 30% during the holidays

Number of those injured in Moscow attack rises to 360

35 more families relocated to Fuzuli city get house keys VIDEO

Controversial Titanic floating door prop sells for $718,750

Humans pass more viruses to other animals than we catch from them

On World Theatre Day, ICESCO calls for greater integration of “father of all arts” into school curricula

Black Carbon: Not just pollutant, but also driver of global warming

From Daniel Noboa Azín, Constitutional President of the Republic of Ecuador

Two Azerbaijani boxers qualify for final of Great Silk Way International Tournament-2024

1 in 3 migrant deaths occur en route to escape conflict: UN migration agency

ICESCO obtains Observer status in Non-Aligned Movement Parliamentary Network

China sends multirole satellite into orbit VIDEO

® Member of the Presidency of Bosnia and Herzegovina Mladen Ivanic elected Honorary Member of the Editorial Board of the My Azerbaijan International Magazine

Japan aims to launch next-generation passenger aircraft by around 2035

Global oil prices drop

Austria stun Türkiye 6-1 in international friendly

Six workers presumed dead after crippled cargo ship knocks down Baltimore bridge

Azerbaijani oil price drops on world markets

Azerbaijan’s Foreign Ministry: Statements by EU and US clearly have a one-sided and biased character VIDEO

2 UK ministers resign, forcing Sunak into Cabinet reshuffle

Poland, Ukraine bag EURO 2024 tickets

Azerbaijan relocates 35 more families to Fuzuli city VIDEO

Speaker of Azerbaijan's Parliament meets with ICESCO Director General

Attack on Turkish nationals in Belgium demonstrates PKK terror threat to Western Europe: Türkiye

Moldovan delegation addresses appeal to PACE regarding Azerbaijan

AI plays key role in protecting Australia's giant kelp forests

ANAMA: 462.1 hectares of territory cleared of mines and UXOs over past week

Moscow court arrests eighth suspect in Crocus City Hall terrorist attack case

Azerbaijan's Defense Ministry: Another stronghold of Armenians found in Karabakh region

Global Times newspaper hails Azerbaijan-China relations as "Gold standard friendship"

Over 1.6M competitors applied to technology contests at Türkiye's TEKNOFEST

Western Azerbaijan Community strongly condemns Tovio Klaar's anti-Azerbaijani stance and approach violating media freedom

Boeing CEO to step down in management shake-up as manufacturing issues plague storied plane maker

Geneva hosts 3rd Conference of Non-Aligned Movement Parliamentary Network

To His Excellency Mr. Mohammed Shahabuddin, President of the People’s Republic of Bangladesh

Death toll in Moscow terror attack rises to 139: Russia

Azerbaijan draw 1-1 with Bulgaria in FIFA Series 2024

Turkish foreign minister, NATO chief discuss forthcoming meeting, regional developments

Speaker of Azerbaijan’s Parliament meets with Serbian counterpart

Azerbaijani female gymnast qualifies for Paris 2024 Olympics

EU investigates Apple, Meta and Google owner Alphabet under new tech law

Azerbaijan to face Bulgaria in FIFA Series 2024

State Security Service conducts an operation: a person planning acts of terror arrested in Azerbaijan

Ecuador's youngest mayor found shot to death alongside staffer

® Former President of Croatia Ivo Josipoviс holds meeting with staff of My Azerbaijan International Magazine

Azerbaijani aerobic gymnasts win silver medal at Cantanhede tournament

Azerbaijani shooters secure gold medal at international tournament in Germany

Speaker of Milli Majlis addresses 148th Assembly of the Inter-Parliamentary Union

Release of the Press Service of the President

Earthquake of magnitude 6.7 strikes Papua New Guinea, GFZ says

King of Sweden honours ABBA members with Order of Vasa for outstanding achievements in music

Switched at birth at a Manitoba hospital over 60 years ago, 2 men seek answers, compensation from province

5 dead in chemical factory fire in western India

Azerbaijani shooter gains second gold medal at international tournament in Germany

Speaker of Milli Majlis Sahiba Gafarova chairs Asian Parliamentary Assembly Co-ordinating Meeting

Argentine President: I will continue to spare no effort to strengthen our bilateral cooperation and economic relations in areas of mutual interest