BAKU, Azerbaijan, Nov.20
By Zeyni Jafarov - Trend:
S&P Global Ratings Agency has predicted the execution of the balance of the expanded Azerbaijani government’s budget with a 6.5-percent GDP deficit in 2020, Trend reports referring to the agency.
According to the agency, this is connected with a slight weakening in the local economy amid pressures from the COVID-19 pandemic and lower oil prices. Although in case of the risks’ materialization the figures can worsen, S&P Global Ratings expect the recovery of the economy to 1.5-percent GDP growth in 2021 against a significant surplus (11 percent) in GDP.
As reported, following the Azerbaijani economy’s shrink by nearly 7 percent in 2020 the real GDP will rebound next year.
Earlier, S&P Global Ratings affirmed its 'BB+/B' long- and short-term foreign and local currency sovereign credit ratings on Azerbaijan. The outlook on the long-term ratings dropped from stable to negative given risks related to military conflict in Nagorno Karabakh, reflecting the assumption that the situation can influence prospects for macroeconomic growth in Azerbaijan and the confidence of foreign investors.
“However, the outlook for the credit rating could rise to “stable” if tensions and lingering uncertainty over the armed conflict diminish, preventing negative impacts on fiscal performance, the balance of payments and growth prospects,” summed up the agency.