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Gazprombank expects implementation of Azerbaijan's state budget 2022 with less deficit

Economy Materials 8 July 2022 11:35 (UTC +04:00)
Gazprombank expects implementation of Azerbaijan's state budget 2022 with less deficit
Sadraddin Aghjayev
Sadraddin Aghjayev
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BAKU, Azerbaijan, July 8. Russian Gazprombank expects that the state budget of Azerbaijan for 2022 will be implemented with a smaller deficit than planned, Deputy Head of Research, CIS Macroeconomist Gulnara Khaidarshina told Trend.

According to her, the bank assesses implementation of the state budget of Azerbaijan for 2022 within 3.6 percent of GDP.

"Budget for 2022 was initially drawn up on the basis of a conservative oil price forecast of $50 per barrel. According to the amendments, updated oil price forecast has been raised by 70 percent,” she said.

“At the same time, average price of Azeri Light brand oil is close to the level of $110 per barrel since the beginning of 2022, which is already 30 percent higher than the updated level in the budget. This indicates the likely implementation of the budget this year with a lower deficit than planned, which, according to my estimates, will amount to 3.6 percent of GDP," Khaidarshina added.

According to Khaidarshina, if in 2022 the average price of oil remains at $100 per barrel, the state budget of Azerbaijan can be implemented with a deficit that will amount to no more than 0.6 percent of GDP.

"This is another factor in support of sovereign ratings of Azerbaijan and its Eurobonds, which we consider to be among the most interesting in Commonwealth of Independent States (CIS) in current conditions," she noted.

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