The rebound in oil prices since early 2017 has contributed to a stabilization in Azerbaijan's economy, Moody’s said in its report.
‘We expect the economy to return to growth in 2018, expanding 1.5% after 0.1% growth in 2017 (based on preliminary estimates) and a 3.1% contraction in 2016. We also expect the fiscal balance to return to a surplus of 1.0% of GDP this year, after three consecutive years of deficits. Combined with positive nominal GDP growth, the fiscal surplus will help stabilize the debt burden. However, we do not expect debt to reverse to any significant degree over the near term because the government is likely to extend additional guarantees to catalyze infrastructure investment’, the agency said.