Azerbaijani economy withstood the global financial crisis, but not immune
2010-03-04 04:53 -The Azerbaijani economy has withstood the impact of the global financial crisis well, but has not been immune to it. Overall GDP grew at an impressive 9.3 percent during 2009, but non-oil GDP growth fell from 16 percent in 2008 to 3 percent in 2009. The most direct impact of the crisis was through a large drop in the price of oil and lower external demand, which caused fiscal and export revenues to fall by nearly 30 percent. In addition, commercial banks cut back their loans to the private sector because of lower access to foreign financing, and a number of state-owned enterprises experienced refinancing difficulties. As international commodity prices fell, average annual inflation dropped dramatically from more than 20 percent in 2008 to 1.4 percent in 2009.