By Ayya Lmahamad
Moody’s has evaluated Azerbaijan's economy as stable in its latest report, Center for Analysis Economic Reforms and Communication’s press service reported on June 19.
Despite the expansion of the coronavirus pandemic and the gradual decline in global oil and gas prices over the past three months, the agency's rating of the current assessment of the country's resilience to external shocks is positive.
Moody's international rating agency calls Azerbaijan's currency reserves the main guarantor of macroeconomic stability in Azerbaijan, namely the reserves accumulated by the Petroleum Fund and the Central Bank in accordance with the guidelines of the International Monetary Fund.
In the face of existing threats and challenges, Moody's focus on government reserves as a guarantee of economic stability can be interpreted as a medium-term distance from the risk zone against the background of existing reductions.
Moreover, it states that current account surpluses are directly linked to oil and gas prices, economic and legal reforms led by President Ilham Aliyev and that will deepen the investment and business environment for further growth of the non-oil industry in the post-pandemic period.
The existence of deficits in the current period is estimated to be an expected forecast.
Nevertheless, the agency presented a positive forecast for 2021 among oil producing and exporting countries only in relation to Azerbaijan.
It should be noted that as a result of the policy of transparency, efficiency and good governance pursued by the tax and customs administration, the budget surplus for the first five months amounted to AZN 1.1. billion.
Moody's an international rating agency and is a subsidiary of Moody's Corporation.
It is engaged in assignment of credit ratings, research and risk analysis. Along with Standard & Poor's and Fitch Ratings, Moody's is one of the "big three" international rating agencies.
Follow us on Twitter @AzerNewsAz