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Fitch Solutions: Economic growth in Azerbaijan this year to be higher than 10-year indicator

12 January 2023 15:59 (UTC +04:00)

"We at Fitch Solutions expect Azerbaijan’s economic growth to slow from an estimated growth rate of 4.5% (downwardly revised from 5.1%) in 2022 to 3.7% in 2023", forecasted Fitch Solution, APA-Economics reports.

Lower oil and gas prices in 2023 will weigh on the country’s energy sector which accounts for over 50.0% of the Azeri economy.

That said, we believe that gross fixed capital formation will contribute more towards growth in 2023 and beyond as European demand for Azeri energy exports rises, necessitating investment into capacity building. As such, we continue to expect the Azeri economy to outperform in terms of growth in 2023 relative to the historic 10-year average of 1.3% recorded between 2011 and 2021