The state budget surplus amounted to 7% of GDP
The state budget surplus amounted to 7% of GDP
In the first months of 2024, Azerbaijan demonstrated financial stability, as evidenced by a significant state budget surplus of 1 billion 302 million manats, or 7% of the country's gross domestic product (GDP) for January and February. This figure is especially noteworthy given the surplus of 1 billion 742.2 million manats in January alone, which is an astounding 19.1% of GDP for this period.
Operational data from the Ministry of Finance indicate an astonishing 11.5% increase in state budget revenues in January-February 2024, amounting to 6 billion 555 million manats compared to the same period in 2023. At the same time, Azerbaijan's nominal GDP for the same period amounted to 18 billion 576.9 million manats, which once again underlines the viability of the country's economy.
As for expenses, in January-February 2024 there was a significant increase of 43.5%, amounting to a total of 5 billion 253 million manats. Such an increase in spending implies a targeted budget expansion strategy, possibly aimed at stimulating economic growth, strengthening infrastructure and investing in social services.
Looking ahead, it should be noted that the state budget of Azerbaijan for 2024 provides for revenues of 34 billion 173 million manats against expenditures of 36 billion 763 million manats, which indicates a planned deficit of 2 billion 590 million manats, or 2.2% of GDP. This projected deficit, although different from the initial surplus, is relatively modest and within manageable limits. It reflects a strategic approach to budget planning, in which deficits are used to finance development projects and strategic investments that potentially stimulate long-term economic growth.
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- Politics
- 15 March 2024 17:32
Economics
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Azerbaijan's financial standing continues to strengthen as the country's foreign currency reserves have surged to $71 billion as of January 1, 2025, according to the Ministry of Finance. This figure, which includes reserves held by the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA), far exceeds the nation's external debt, which stands at a fraction of its reserves, specifically nearly 14 times less. This robust reserve position reflects Azerbaijan's fiscal stability and the government’s strategic economic management.
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According to operational data from the Ministry of Energy of Azerbaijan, in January 2025, the country produced 2.3 million tons of oil, including condensate, and 3.9 billion cubic meters of gas.
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The State Oil Company of Azerbaijan (SOCAR) has opened a representative office in Albania and is set to launch a specific project this year, the Albanian company "Albgaz" announced.
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"Azerbaijan is currently among 54 middle-income countries," said Shahmar Movsumov, head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, during the presentation of the World Bank’s World Development Report 2024 in Baku on February 10.
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