Energy exports will continue to be the key driver underpinning growth in Azerbaijan in the years ahead, the international credit ratings agency Fitch Solutions said in its forecast about Azerbaijan’s economy, APA-economics reports.
“Over our 10-year forecast period to 2033, we expect energy exports to continue to be the key driver underpinning growth in the years ahead, even though they are unlikely to be as strong as previous years. The government will continue to attempt to diversify the economy away from the oil and gas sector over the coming years,” – FS noted.
Fitch Solutions considers that given Europe's attempt to diversify away from its dependence on Russian energy trade, it’s believed that Azerbaijan will benefit from more EU demand over the forecast period.
“We expect the growth profile for Azerbaijan to be more steady over the decade-long forecast period when the economy will grow by an average rate of 3.1% compared with 1.7% over 2012-2022. The country's extensive energy reserves, particularly gas, will remain a predominant growth driver over the next decade with Europe especially consuming more Azeri energy.
Since 2005, oil revenues have comprised close to 30% of GDP and over 75% of government revenues in recent years. We believe that the percentage that oil contributes to GDP is likely to remain high throughout,” Fitch Solutions added.
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