"We believe that GDP per capita will rise to USD16,6999.0 in 2033 from USD8,612.0 in 2023 with risks to the upside given currency stability," the international credit ratings agency Fitch Solutions said in its forecast about Azerbaijan’s economy, APA-Economics reports.
"We expect nominal rising incomes and consumption to provide some support for the diversification of the economy away from the oil and gas sector. These factors will be particularly important for the sustainability of the economy over the long term, as an overreliance on energy exacerbates the risks of Dutch disease. The government is aware of the need for economic diversification and plans to introduce several measures to mitigate this risk," - FS noted.
Fitch Solutions considers that these include a comprehensive review of the non-oil tax policy, introducing a flat tax system, and a lower VAT to support the development of medium-sized companies.
"In addition, the government currently has several ambitious plans to improve infrastructure, particularly in energy and transport. These factors will aid the development of a competitive non-energy sector, which will support economic growth", the agency added.
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