2023-09-16 07:11:00
The international rating agency Fitch Ratings has confirmed the long-term foreign currency issuer default rating of Azerbaijan at BB+ with a positive outlook, Day.Az reported on Saturday.
According to the agency, the “BB+” rating is supported by Azerbaijan’s very strong external balance sheet, low public debt and high financial flexibility thanks to large sovereign wealth fund assets.
The agency predicts that the net position of Azerbaijan’s sovereign assets will increase by 14 percentage points. to 63 percent of GDP in 2023 and to 72 percent by 2025, the highest among peer groups.
It is noted that despite the fall in oil prices, a double-digit surplus is expected in Azerbaijan in 2024-2025. In addition, in 2023 foreign exchange assets will reach 68 billion US dollars, 82 percent of this amount will fall to SOFAZ.
The agency forecasts GDP growth of 1.8 percent in 2023, with growth averaging 2.3 percent in 2024-25 due to the growth of the oil economy.
Fitch also expects natural gas production to continue to grow, with potential for increased exports to Europe once contracts are concluded.
#Fitch #confirms #positive #outlook #Azerbaijans #economy