IMF forecast: Azerbaijan has balanced budget with oil price at $90.00 per barrel

International Monetary Fund (IMF) has released the Regional Economic Outlook of the Caucasus and Central Asia (CCA).

According to the IMF estimates, the expected recovery of production in Azerbaijan will ensure growth of oil and gas production in the region.

IMF also mentioned reduction of incomes from hydrocarbons especially in Azerbaijan. 

“The countries exporting oil and gas have a balanced budget with the oil price between $43.00  per barrel in case of Turkmenistan and $90.00 per barrel in case of Azerbaijan, providing them a sufficient buffer for softening fluctuations of oil prices. The prices, which help to achieve a balanced budget, have been going up in majority of the countries since 2011, showing reduction of budgetary resources,” reads the IMF report.

IMF also stated that reduction of the external demand in oil and gas exerts a pressure on the foreign economic positions of some countries of the CCA region. Azerbaijan and Kazakhstan are especially liable to reduction of trade proficits.

According to the IMF estimates, private credits have grown in Azerbaijan, which requires a reliable supervision. IMF also stated that it is also important to establish a stable pension system in Azerbaijan. 

IMF mentioned that in 2013 GDP growth in Azerbaijan is forecasted at 4.6% and in 2014 – 4.8%. The inflation rate is expected to be 3.7% and 6.3%, respectively.--0---