Azerbaijan revealed out to be prepared to withstand economic shocks - Renaissance Capital
BAKU, Azerbaijan Jan. 8
By Zeyni Jafarov - Trend:
Oil exporting countries of the CIS region revealed to be best prepared to withstand double economic shocks amid the coronavirus pandemic (COVID-19) and the fall in oil prices, Head of the Debt Market Analysis Department of the Renaissance Capital investment company, Maria Radchenko told Trend.
Earlier, Radchenko projected that, Azerbaijan, as one of the oil-exporting countries in the CIS, will end 2020 with a moderate decline in GDP at 3.5 percent, which is considered a small indicator compared to world oil-exporting countries.
“Azerbaijan has a balanced budget with a moderate deficit, a low level of public debt, and sufficient foreign exchange reserves to ensure sustainability even over an extended period of low oil prices,” she said.
The head also stressed that there are no significant risks to reduce Azerbaijan's sovereign credit ratings: “The baseline scenario for 2021, which assumes an oil price of $50 per barrel and a gradual increase in production volumes, will help Azerbaijan's GDP growth to recover to 2.9 percent in the coming year,” Radchenko said.
Earlier, the World Bank (WB) noted that Azerbaijan's GDP growth in 2021 is projected at 1.9 percent, despite the fact that in the outgoing 2020, due to the pandemic, GDP decreased to 5 percent.
The WB also stated that economic activity is expected to expand in Azerbaijan during 2021-2022, as oil prices stabilize, and the economy will benefit from investments and expenses for the reconstruction of the Azerbaijani territories liberated from the Armenian occupation.
Azerbaijan’s Minister of Economy Mikail Jabbarov previously noted that Azerbaijan's forecasts are more optimistic and based on the adopted parameters, the rates of economic growth are planned at 3.4 percent.