Azerbaijan’s GDP may grow 1.5% in 2018, Moody’s Investors Service said in a report.
The agency said that the rebound in oil prices since early 2017 has contributed to a stabilization in Azerbaijan's economy
"Higher oil prices, currently around $65-$70 per barrel, will therefore boost economic growth and fiscal revenue," the report says.
"We also expect the fiscal balance to return to a surplus of 1.0% of GDP this year, after three consecutive years of deficits. Combined with positive nominal GDP growth, the fiscal surplus will help stabilize the debt burden. However, we do not expect debt to reverse to any significant degree over the near term because the government is likely to extend additional guarantees to catalyze infrastructure investment’, the agency said.
According to Moody’s, diversification of Azerbaijan’s economy would increase economic resiliency over the medium to long term. "Progress on tourism and transport and logistics appear to be most advanced," the report added.
