BAKU, Azerbaijan, October 22. Azerbaijan’s current account surplus is expected to increase by 12.1 percentage points to 27.3 percent of the GDP in 2022, Trend reports, citing the data from Fitch Ratings.
According to the agency, high energy prices are further strengthening the sovereign balance sheet of the country.
However, Azerbaijan’s current account surplus is forecast to narrow to 19.3 percent in 2023, and to 12.1 in 2024, due to a drop in the oil price to average $85 per barrel in 2023, and $65 per barrel in 2024. At the same time, it will remain the highest in the 'BB' peer group.
Meanwhile, the outlook on Azerbaijan's Long-Term Foreign-Currency Issuer Default Rating (IDR) has been revised to ‘Positive’ from ‘Stable’, and affirmed at 'BB+'.
“The rating is supported by Azerbaijan's very strong external balance sheet, the lowest public debt in the peer group, and financing flexibility from large sovereign wealth fund assets,” Fitch said.
---
Follow the author on Twitter: @mariiiakhm