BAKU, Azerbaijan, April 5. Asian Development Bank (ADB) expects Azerbaijan's current account surplus to expand to the equivalent of 32.2 percent of GDP in 2023, Trend reports via the latest Asian Development Outlook.
At the same time, according to ADB, 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.
"With higher oil production and gas exports, the export total will rise by 0.2 percent in 2023 despite lower average oil prices. Exports will decline by 2.9 percent in 2024 with a forecast small decline in oil production. The overall trade surplus is expected to widen by 6.4 percent in 2023 and then narrow by 5.6 percent in 2024," the report said.
Meanwhile, Azerbaijani imports are expected to fall in 2023 as domestic demand slows, but are projected to increase in 2024 as growth accelerates and demand recovers.
"Higher inflows from transport and tourism services will narrow the deficit in services by 5.8 percent in 2023 and 16.7 percent in 2024. The income deficit may widen further in 2023 and 2024 because of rising income repatriation by foreign investors and interest payments on foreign securities and loans," the report noted.
Furthermore, the bank projects Azerbaijan's GDP growth at 3.5 percent in 2023, and 3.8 percent in 2024.