BAKU, Azerbaijan, October 31. Azerbaijan will maintain a budget surplus of 1.7 percent of gross domestic product (GDP) and a current account surplus of seven percent of GDP in 2024-2027, Trend reports.
According to S&P Global Ratings, the Azerbaijani government also plans to maintain net assets at an average of around 50 percent of GDP until the end of 2027.
“We believe that strong external economic performance will remain a major positive factor for Azerbaijan's credit rating. This will be supported by the significant foreign assets of the State Oil Fund of Azerbaijan (SOFAZ). We estimate that external liquid assets will exceed external debt by end-2027 and the net international investment position will average 68 percent of GDP over the 2024-2027 period," the report says.
S&P's forecast also assumes that the enlarged government's budget surplus will average 1.7 percent of GDP in 2024-2027.
"Azerbaijan's government expects a consolidated budget deficit in the coming years based on the calculated average oil price of $60 per barrel, while our forecast is $80 per barrel. We predict a state budget surplus of 3.4 percent of GDP in 2024," the analysts noted.
S&P Global Ratings is a U.S. credit rating firm and a subsidiary of S&P Global that disseminates financial research and analysis on equities, fixed income securities, and commodities. S&P is regarded as the largest among the Big Three credit-rating organizations, which also comprise Moody's Ratings and Fitch Ratings.