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Renaissance Capital expects highest account surplus in Azerbaijan within 9 years

Economy Materials 7 August 2022 17:42 (UTC +04:00)
Renaissance Capital expects highest account surplus in Azerbaijan within 9 years
Maryana Akhmedova
Maryana Akhmedova
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BAKU, Azerbaijan, August 7. The largest account surplus since 2013 is expected in Azerbaijan in 2022 - above 15 percent of the GDP, Trend reports via economic review from the Renaissance Capital investment bank.

"We see no major drivers to revise the (fixed) Azerbaijani manat AZN1.70/$ rate forecast. Global fuel prices’ growth supports the strengthening of the current account of Azerbaijan", the report said.

In the medium term, financial buffers and abundant accumulated reserves will provide the basis for financial stability, the bank said.

According to Renaissance Capital's forecast, Azerbaijan's GDP growth in 2022 will be 3 percent, which will be largely supported by the investments in the territories liberated from Armenian occupation in 2020.

"Increased fiscal sustainability and solid accumulated buffers should limit downsides, we argue. In coming years, growth should also be supported by investments ($1.5 billion, or 2.2 percent of GDP in 2022) directed towards the development of [the liberated] territories", Renaissance Capital said.

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