The state budget deficit of Azerbaijan in 2015-2016 can be up to 2% of GDP. As analysts of the international rating agency Fitch Ratings reported, the long-term Issuer Default Rating (IDR) of the country for foreign and local currency is BBB- with "stable" outlook. These are the same ratings of senior unsecured bonds in the country's foreign and local currency. The short-term IDR for foreign currency is F3.
Stability is ensured by a strong government balance sheet. The assets of the State Oil Fund in the first half reached $ 37.6 billion. "Given the foreign exchange reserves of the Central Bank of Azerbaijan in the amount of $ 15 billion. Gross sovereign external assets account for 69% of GDP. Fitch expects further moderate growth of sovereign assets by a decline in the current account surplus in 2014-2016 years ", - reads the information on the site. Analysts believe that in the event of a sharp decline in oil prices or a significant reduction in oil surplus funds will provide a "financial safety net".
The report emphasizes that "the banking system remains relative weakness of the economy. International Bank of Azerbaijan (IBA), which is majority state ownership and control of one-third of the assets of the banking system, has a problem with the quality of assets, despite the current recapitalization of 500 million manat," said the agency. --17D-
Economics
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On September 20, 2024, Volts Energy Ltd., an engineering company based in Abu Dhabi, and Azerbaijan’s Turan Energy LLC announced the creation of a new joint entity, TuranVoltsEnergy. This venture will focus on EPC (Engineering, Procurement, and Construction) projects in renewable energy and energy storage systems within Azerbaijan.
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The number of passengers traveling by air from Azerbaijan has seen a significant increase in 2024, rising by 26.7% from January to September compared to the same period last year. According to the State Agency for Tourism, a total of 2,548,897 people used air transport services to travel to 40 countries during this period.
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Azerbaijan’s prolonged border closures, approaching five years, have taken a profound toll on the labor market, particularly in border regions, where cross-border trade and services were once critical economic drivers. Official data highlights the stark disparity between the growing labor force and the lack of new job creation in these areas, underscoring the social and economic challenges faced by residents.
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Azerbaijan’s food imports have surged to unprecedented levels, with a significant rise recorded in the first nine months of 2024, according to data from the State Customs Committee. Food imports for January-September reached USD 1.755 billion, marking an 11.4% increase over the same period last year. This represents a USD 179.7 million increase compared to 2023, setting a record for food imports in the country’s history. Over the past decade, food imports have more than doubled, rising by 2.4 times, with a notable 52.5% growth in the last five years alone.
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