BAKU, Azerbaijan, May 9. Fitch international rating agency shared last week revised forecast for Azerbaijan’s GDP growth for 2022-2023, Trend reports.
The agency projected the GDP growth in 2022 by 3.6 percent, compared to 5.6 percent in 2021, with further weakening from the second quarter of 2022. Besides, the GDP growth was projected to slow to two percent in 2023, below the 'BB' median of 3.5 percent.
Last week, Fitch also published forecast for Azerbaijan’s net sovereign asset position. According to the forecast, such position is expected to increase by 12 percent points from 2021 through 2023 to 80 percent of the GDP, compared to the projected 'BB' median of eight percent of the GDP.
Meanwhile, Fitch affirmed Azerbaijan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' with a Stable Outlook.
The agency also forecasted last week an increase in the state budget surplus of Azerbaijan up to 10.9 percent in 2022, and by 5.2 percent – in 2023.
At the same time, Fitch predicted that Azerbaijan's expenses for the restoration of Karabakh in 2022-2023 will average 2.1 percent of GDP.
Along with the above, Fitch forecasted a reduction in Azerbaijan's public debt in 2022.
According to this forecast, the public debt will decrease by 6.6 percent, to 9.7 percent of GDP.