BAKU, Azerbaijan, June 11. Azerbaijan's external liquid assets are expected to surpass external debt through 2025 and the net international investment position will average 65 percent of GDP in 2023-2026, Trend reports.
"Although Azerbaijan remains vulnerable to potential terms-of-trade volatility, we consider that its large net external asset position will serve as a buffer that could mitigate the potential adverse effects of economic cycles on domestic economic development. Based on our oil price and production forecasts, we expect that Azerbaijan's current account surplus will average 15 percent of GDP over 2023-2026, following a record 30 percent of GDP current account surplus in 2022, the highest level in over a decade," S&P said.
According to the S&P analysts, Azerbaijan's strong external stock position will remain a core rating strength, reinforced by the large amount of foreign assets accumulated at State Oil Fund of Azerbaijan (SOFAZ).
As of January 1 of this year, the liquid assets of the banking sector of Azerbaijan stood at 17.2 billion manat ($10.12 billion).