Fitch Ratings on Azerbaijan: large foreign exchange reserves, but the situation in the economy and geopolitics is poorly predictable

In terms of revenue and expenditure metrics, Azerbaijan leads the South Caucasus countries for the 2025 state budget. Azerbaijan's projected state budget revenues for 2025 are up to 2.5 times higher than Georgia's and more than three times higher than Armenia's. The 2025 state budget revenues are forecasted to increase by 1.928 billion AZN, or 5.3%, compared to the 2024 projection, reaching 38.316 billion AZN (equivalent to 22.5 billion USD at the current exchange rate).

This article provides a comparative analysis of the main parameters of the 2025 state budget with those of neighboring countries.

A recent report from Azerbaijan’s State Tax Service under the Ministry of Finance casts a spotlight on a key inefficiency in the country’s business environment: more than a third of registered commercial facilities are inactive.

S&P Global Ratings has reaffirmed Azerbaijan's long-term and short-term sovereign credit ratings in foreign and national currency at "BB+/B" with a stable outlook.