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Azerbaijan's current account balance to return to surplus in 2021 - Standard & Poor's

Finance Materials 25 January 2021 15:31
Azerbaijan's current account balance to return to surplus in 2021 - Standard & Poor's

BAKU, Azerbaijan, Jan. 25

By Zeyni Jafarov - Trend:

The balance of the current account of Azerbaijan will make 0.4 percent of GDP this year, Trend reports with reference to the reporting data of the Standard & Poor's (S&P) international rating agency.

This indicator shows the return of Azerbaijan's balance of payments to a surplus because the current account deficit in Azerbaijan is 3.7 percent of GDP as of 2020.

In accordance with the report, the current account in GDP will remain in surplus and will reach 2.5 percent in 2022 while in 2023 and 2024 it will accelerate to 4.5 percent and 4.4 percent, respectively.

During an unfavorable external environment, the current account balance of Azerbaijan, which is the main component of the balance of payments, was close to a stable state for nine months of 2020.

The balance of payments was mainly influenced by the changes in export prices. A decrease in import of goods and services of the non-oil sector in terms of a pandemic also had a balancing effect on the balance of payments.

In general, the total deficit of Azerbaijan's balance of payments for the three quarters of 2020 amounted to $1.8 billion, while in the same period of 2019, a surplus of $4.1 billion was formed in the balance of payments of Azerbaijan.

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