BAKU, Azerbaijan, Mar.31
By Zeyni Jafarov - Trend:
A deficit of 6.5 percent of GDP was recorded In Azerbaijan’s 2020 consolidated budget due to lower revenues and higher spending, especially on measures against the COVID-19 pandemic (2.7 percent of GDP), the World Bank (WB) said in ‘Economic Review of Europe and Central Asia’, Trend reports on Mar.31.
The country’s budget deficit was financed through the State Oil Fund of Azerbaijan (SOFAZ).
The existing balance in the oil market is fragile and largely depends on the OPEC + agreements. Besides, the situation with the pandemic is still uncertain and will depend on the rate of COVID-19 vaccination, according to the WB.
Significant reserves of SOFAZ (over 100 percent of GDP at the end of 2020) will help protect the Azerbaijani economy from the above risks, the review noted.
The concept of national development for the period until 2030 published by Azerbaijan reflects a renewed long-term commitment to solving systemic macroeconomic, structural and management problems, which will help to find new sources of economic growth and ensure sustainable and inclusive development, added the WB.
Earlier, the head of the Central Bank of Azerbaijan Elman Rustamov stated that as of early 2021, the volume of Azerbaijan's strategic foreign exchange reserves exceeded $51 billion.
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