BAKU, Azerbaijan, May 3. Fitch forecasts that Azerbaijan will almost fully execute the planned expenditure for the rehabilitation of the lands liberated from Armenian occupation [during the second Karabakh war in 2020], Trend reports, citing the data from Fitch Ratings.
According to the report, the projected expenditure will account for an average of 2.1 percent of the GDP in 2022-2023.
Meanwhile, Azerbaijan’s general government balance surplus will increase by 10.9 percent of the GDP in 2022 supported by high energy commodities prices, and, to a lesser extent, high oil tax revenues and reduced support due to the pandemic. The forecast for 2023 is rather moderate - 5.2 percent in line with low energy prices.
Fitch has also 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.
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