BAKU, Azerbaijan, April 4. Azerbaijan's current account surplus expanded from the equivalent of 15.2 percent in 2021 to an estimated 25.7 percent in 2022, due to boost in exports by 81.9 percent on the background of high hydrocarbon prices, Trend reports, citing the latest outlook from the Asian Development Bank (ADB).
"The trade surplus more than doubled from $11.2 billion a year earlier to an estimated $24.2 billion on higher oil and gas export earnings, increased transportation services, and higher income inflow, with hydrocarbons accounting for 90 percent of exports," the report said.
According to the bank, higher domestic demand led to a 23.7 percent increase in merchandise imports.
"Secondary income rose sharply from $0.7 billion in the first 9 months of 2021 to $2.3 billion in the same period of 2022 because of higher remittances and money transfers from Russian migrants. Net foreign direct investment in the first 9 months of 2022 rose by 24 percent to $4.6 billion, with nearly 70 percent of investment going into oil. The central bank’s foreign exchange reserves rose by 27.1 percent to $9.0 billion, providing cover for 9.5 months of imports. Together with the assets of the State Oil Fund, Azerbaijan’s strategic reserves reached $58 billion at the end of 2022, equal to 73.7 percent of GDP," the ADB report said.
Meanwhile, the bank projects Azerbaijan's GDP growth at 3.5 percent in 2023, and 3.8 percent in 2024.