BAKU, Azerbaijan, February 17. The international rating agency Fitch Ratings forecasts economic growth to reach 2.8 percent in 2024, Trend reports.
According to Fitch Ratings, growth slows markedly to 1.1 percent in 2023, reflecting a contraction in the oil and gas sector and weakening post-pandemic recovery in some of the key non-oil sectors, primarily transport.
"We expect growth to recover to 2.8 percent in 2024 and 2.5 percent in 2025, supported by public investment," the information says.
Meanwhile, Fitch Ratings affirmed Azerbaijan's long-term foreign currency Issuer Default Rating (IDR) at 'BB+' with a Positive outlook.
The rating is supported by a very strong external balance sheet, the lowest sovereign debt among comparable countries, and the flexibility of funding from large sovereign wealth fund assets.
To note, the positive outlook reflects the continued strengthening of external and fiscal buffers due to higher-than-budgeted energy prices, as well as the prospect of tighter spending restraint in the energy sector.
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