INGLAB AKHMEDOV: "AZERBAIJAN "COMPENSATES" LOWER PRICES IN ARMENIA WITH HIGHER INCOMES OF THE AZERBAIJANI POPULATION"

Today, Azerbaijan
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Dec 20 2007

"Considering lower incomes of the population in Armenia and weaker
budget potential, we have the following: Azerbaijan "compensates"
relatively lower prices in Armenia with higher incomes of the
Azerbaijani population", famous economist Inglab Akhmedov said in his
interview while commenting on conclusions drawn from the WB report,
according to which life in Azerbaijan is cheaper than in Armenia
and Georgia.

He said it is impossible to draw such conclusions, as the said report
fixes both index of prices of definite goods and exchange rate of the
national currency, which is just an indication of existing tendencies
in these countries.

He noted that the said report describes the situation in 2005, which
is quite different from that of 2007. According to him, the current
situation is worsened by the well-known resolution of the Tariff
Council of January 8 of 2007.

"On the whole, it is possible to state that the year of 2007 is
marked with inflation, which was "imported" even to the United
States. Inflation was high in Azerbaijan and our country has neared
Georgia by this indicator. As is known, prices on foodstuffs are
higher in Georgia as compared to Azerbaijan due to high prices on
energy sources. If we take into account the fact that incomes of the
population are higher in our country than in Georgia, we will come
to a conclusion that the purchasing capacity of the population in
Azerbaijan is currently higher than in Georgia", he said.

He added that the purchasing capacity of Armenian population is also
lower as compared to Azerbaijan.