BAKU, Azerbaijan, April 15. Azerbaijan is largely insured from the direct impact of US trade tariffs, Trend reports via the Netherlands ING banking group.
According to the group, at the same time, Azerbaijan is not completely insured from the secondary effects of US trade tariffs. Although the domestic macroeconomic situation in the country is generally satisfactory, the main factors that need attention include trade relations with China and the EU, sensitivity to oil prices and increasing inflationary pressures.
"Pressure on energy prices is a critical factor for fuel exporters. 52 percent of Azerbaijan's budget revenues and 88 percent of total exports are formed from oil. In this regard, Azerbaijan seems to be more resilient to pressure from energy prices. However, Azerbaijan seems to be more insulated for its budget and current account with oil prices equal to $63-64 per barrel," the group said.