S&P expects Azerbaijan's economy to grow by average 1.4% by 2027

Azerbaijan's economy is expected to grow by an average of 1.4%, Report informs, citing S&P Global Ratings.

S&P predicts real GDP growth in the country at 0% in 2023.

In nominal terms, Azerbaijan's GDP in 2023 is projected to be ₼131 billion ($77 billion) compared to ₼134 billion ($79 billion) in 2022. This figure is expected to reach ₼137 billion ($81 billion) in 2024, ₼143 billion manats ($84 billion) in 2024, and ₼148 billion manats ($87 billion) in 2026.

Azerbaijan's economy is heavily dependent on the hydrocarbon sector, with oil and gas accounting for 90% of exports and about 50% of GDP, the agency said, adding that the country's economy currently benefits from favorable oil prices, which in turn support the financial position and balance of payments Azerbaijan.

With an estimated average Brent oil price of nearly $100/bbl in 2022, the agency expects average oil prices to remain high at $86/bbl in 2023 and $85/bbl in 2023 in subsequent years.