Fitch Ratings has announced the growth forecast in the oil and non-oil economies in Azerbaijan for first half of 2023, APA-Economics reports citing the agency.
“We forecast growth of 1.8% in 2023, after a slowdown in 1H23 in the oil and non-oil economies. We expect growth to average 2.3% in 2024-2025 due to the non-oil economy growth, while the energy sector drag could ease due to new oil production that could slow the decline (7.6% fall in 2022 to 676,000 barrels a day). We also expect further natural gas production growth with potential upside if purchasing contracts to increase export volumes to Europe are finalized.”
The agency notes that progress towards economic diversification is constrained by the large state presence, limited access to financing, governance challenges and low non-energy foreign investment.