- We will discuss economic issues at today's meeting. There are only three months left until the end of this year. There will be an exchange of ideas about the work to be done before the end of the year.
In general, I must say that economic development since the beginning of the year has been at the expected level. At the beginning of the year, when talking about how successful this year would be in economic respect, I mentioned that I was sure that this year would be successful for our economy. The results and economic indicators available since the beginning of the year confirm my words. Economy grew by 4.3 percent. When analyzing the processes taking place in today's world and looking at the geopolitical situation in general, I can say that this is a very positive indicator. Economic growth rates exceed those of many developed countries. Of particular importance is the fact that our non-oil sector has grown by 7 percent. This also shows that the steps taken towards diversifying the country's economy and the thought-out reform policies are bearing fruit.
I should also mention that in recent years, the production of oil under projects implemented by foreign oil companies has been declining year after year, which has naturally had a negative impact on our overall economic development rates, and we made up for this decline through the development of the non-oil sector. However, as a result of negotiations with foreign oil companies, the drawbacks in oil production were brought to their attention, we demanded that they eliminate these drawbacks and ensure the stability of oil production. Very hard work has been done in this direction in the last few months. As a result of this work, reasonable hopes have arisen that there will be no further unfounded declines in oil production. Of course, the government bodies and the State Oil Company will always pay attention to the future progress of this work. Thus, the key factor holding back our economic growth will hopefully be eliminated and stable oil production should be ensured next year. Bear in mind that we are currently working on several new projects in the oil and gas sector, and as a result of the development of these projects we have new production forecasts. Probably next year we will all see the new projects and fields producing larger volumes of natural gas and oil condensate. I believe that growth rates in the oil and gas field will be positive.
But of course, our main goal is to further diversify our economy and improve the sustainable development model. Inflation has been at just over 1 percent since the beginning of the year. This is a very positive indicator. I have already declared that the minimum wage and minimum pension will be increased next year, although inflation is at a very low level and although the tasks facing the country require major financial resources - first of all, the development of the military, military-industrial complex and the restoration of Karabakh and East Zangazur. Despite all this, we are doing our best to improve the well-being of our vulnerable citizens. In my recent speech in the Azerbaijan’s Milli Majlis, all these figures were brought to the attention of the public. I don't want to repeat how many large packages of social reforms have been implemented in Azerbaijan in the last five years.
In other words, all these issues give grounds to say with absolute certainty that the rates of economic development will be maintained until the end of this year and – considering the fact that the discussion of next year's budget is currently underway and budget parameters will be more extensive – economic development will also be at an adequate level.
A number of promotion projects are underway to attract foreign investment, especially to the non-oil sector. The stability and predictability prevailing in Azerbaijan, as well as the strengthening of the state of Azerbaijan, the complete restoration of our territorial integrity and sovereignty have naturally improved the attitude of foreign investors towards us, although there has been a very positive investment climate in Azerbaijan for many years. According to the per capita volume of investments, Azerbaijan is among leading countries. The recent years, especially after the anti-terror operation, the complete restoration of our state sovereignty, naturally sent a very positive signal to all investors, and we are now seeing the fruits of that. New enterprises are opening in our traditional industrial centers - Baku, Sumgayit and industrial parks. At the same time, the creation of new industrial parks in liberated lands, in Aghdam and Jabrayil districts should be viewed as a very positive development.
As I mentioned, the discussion of next year's budget is underway now, and it will be submitted to me in the near future. Of course, the budget is a reflection of our capabilities. We stretch our legs according to our coverlet, as the saying goes, and must continue to do. We are not receiving any aid from anywhere. On the contrary, we are reducing our foreign debt, and the implementation of the task I set a few years ago is successfully underway. In terms of foreign debt ratio to the gross domestic product, Azerbaijan is among the world's leading countries. It accounts for only 7.5 percent, which allows us the opportunity to spend less money on the repayment of foreign debt in the future. We will discuss this today and see if repayment of some of the debts ahead of time could be useful. However, I have already said several times that if we wanted to, we could zero the whole debt in one day. In any case, there will certainly be an exchange of views about this issue today.
Next year's main expenses have already been determined. In my speech in the Milli Majlis, the main priorities were clearly indicated. First of all, strengthening the military potential of our country, ensuring our security, protecting the state borders, developing the military industrial complex, education costs, the reconstruction of Karabakh and East Zangazur and other projects. Socially oriented projects, projects related to social infrastructure and those related to general infrastructure – all these will be reflected in our State Investment Program. We will talk about this too. We must ensure that next year, to the extent possible, we accomplish all the key tasks. I have no doubt that this will be the case. Azerbaijan’s economic development model has already proven itself in the world. We have built a strong economy relying on our own resources. We have built a strong and independent economy based on our own resources and not dependent on anyone. Economic independence naturally gives us great opportunities at the international level, so that Azerbaijan can conduct an independent foreign policy with success, confidence, honor and dignity - as we have done and will do.
We will discuss many other issues today. I am sure that the discussion and the obtained results, as well as the decisions to be made, will further accelerate our economic development.
