Azerbaijan’s GDP may grow 1.5 percent in 2018, Moody’s Investors Service said in a report on Feb. 12.
“Higher oil prices, currently around $65-$70 per barrel, will therefore boost economic growth and fiscal revenue,” said the report.
Moody’s also expects surplus of Azerbaijan’s fiscal balance at 1 percent of GDP this year.
The size of Azerbaijan’s sovereign wealth fund remains big enough to cover all of the government debts and guarantees, according to the report.
“Given that all of the assets held by SOFAZ are invested in foreign markets, this provides an effective and substantial financial buffer to mitigate the impact of a future economic shock on Azerbaijan’s fiscal strength,” the report said.
Diversification of Azerbaijan’s economy would increase economic resiliency over the medium to long term, according to Moody’s.
“Progress on tourism and transport and logistics appear to be most advanced,” the report said.