BAKU, Azerbaijan, May 3. Azerbaijan is projected to end 2022 with an increase of 10.9 percent of the GDP in the general government balance surplus, Trend reports, citing the data from Fitch Ratings.
According to the report, Azerbaijan’s general government balance in 2021improved by 10.7 percentage points to a surplus of 4.2 percent of the GDP.
As Fitch explains the growth will be backed by high energy commodities prices, and, to a lesser extent, high oil tax revenues and reduced support due to the pandemic. Fitch also forecasts moderated growth of 5.2 percent in 2023 in line with low energy prices.
“Overall spending is limited by the introduction this year of a budget rule that aims to steadily reduce the non-oil primary balance while limiting public debt at 20 percent of the GDP, the consistent application of which would help strengthen reserves in the medium term and confidence in politics,” Fitch said.
Meanwhile, Fitch has affirmed Azerbaijan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' with a Stable Outlook.
“The Stable Outlook balances the benefit of high energy prices in further boosting Azerbaijan's external and public finances,” Fitch said.
Follow the author on Twitter: @mariiiakhm