CBA: 2023 budget expenditures to exceed 30% of GDP in Azerbaijan

The Central Bank of Azerbaijan (CBA) expects the ratio of state budget expenditures to Gross Domestic Product (GDP) to exceed 30% next year, Report informs, citing the Central Bank's Statement on the monetary policy for 2023.

The CBA stated that in 2023, government demand will play an important role in supporting economic activity. From next year, implementing a non-oil fiscal deficit reduction strategy with continuation of impoementation of fiscal rule is essential to ensure long-term financial sustainability.

Taking into account the high variability of the activities in the Azerbaijani economy, the CBA will regularly update the macroeconomic forecasts for different scenarios next year.

In 2023, the world prices for the main export products, the macroeconomic situation in trade partners, and the realization of the export potential of non-oil products and services will be the main factors affecting the balance of payments of Azerbaijan. According to estimates, a surplus is expected in the current account of the balance of payments in 2023. Diversification of the export structure leads to a decrease in the role of the oil price, balancing the current account.