Normalization of relations with Armenia could open new investment opportunities for Azerbaijan, this was stated in an economic review by ING Group, the largest financial group in the Netherlands, APA reports.
The ongoing normalization of relations between Azerbaijan and Armenia is being viewed positively by international investors. Analysts believe that if the process continues, it could lead to increased foreign capital inflows into Azerbaijan.
Following Fitch, the international rating agency Moody’s has also assigned Azerbaijan an investment-grade rating of Baa3, maintaining a positive outlook. The agency based its decision on strengthened fiscal and external buffers, as well as the potential for improved diplomatic relations.
Nevertheless, Azerbaijan’s trade balance is weakening amid volatility in global oil markets. In the 12 months ending in May 2025, the country’s foreign trade surplus declined to $2.7 billion, compared to $5.5 billion in 2024 and $16.6 billion in 2023.
According to analysts’ estimates, a $1 change in oil prices per barrel translates into approximately $350 million in annual fuel export revenue for Azerbaijan. This highlights the sensitivity of the country’s trade indicators to oil price fluctuations.
Nevertheless, strengthening capital inflows and positive changes in foreign ratings ease current pressures. Investment-grade ratings given by Moody’s and Fitch strengthen Azerbaijan’s position as a reliable partner in international markets.
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