United Kingdom, London, March.11. / Trend N. Ismayilova /
High demand for products of oil and gas sector will contribute to steady raising Azerbaijan's economy," said acting director on sovereign ratings of Standard & Poor's international rating agency Luc Marchand in his speech on trade and investment forum "The UK in Azerbaijan", which took place in London March 08, 2010. The forum was organized with the support of the Middle East Association and the International Bank of Azerbaijan.
According to Azerbaijan's sovereign rating, awarded with BB + with positive outlook Dec.14, 2009, the strengths of the Azerbaijani economy is the fiscal and external buffers, the low level of public debts, a significant fund established on the basis of revenues from oil and gas resources, as well as high demand in this sector, which will contribute to high rates of economic growth, Marchand said.
The weaknesses include high vulnerability to oil prices and narrow economic base, expansionary fiscal policy and the inadequacy of the instruments of monetary policy, he said.
The presence of high level of oil prices could create an opportunity to accelerate reforms aimed at developing non-oil sector.
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