Fitch’: Azerbaijan’s commodity dependence will remain particularly high

Baku. 3 February. REPORT.AZ/ Given the expected rise in gas exports upon completion of the Southern Gas Corridor project, commodity dependence will remain particularly high.

Report informs, Fitch Ratings said in its Outlook on Azerbaijan.

Macroeconomic performance lags 'BB' peers, reflecting Azerbaijan's costlier economic adjustment to the oil price shock compared with other CIS oil exporters and its lack of economic diversification. Real GDP growth, at an average of 1.2% over the past five years, compares unfavourably with the 'BB' median of 3.5%, while inflation has remained in double digits since 2016. Volatility of GDP growth, inflation and the exchange rate all compare unfavorably with peers. 

Prospects for meaningful diversification of the economy, although on the authorities' agenda through the 'strategic roadmaps' initiative, appear remote.