Oil exporting countries from the CIS region are best prepared to withstand the double shock of the COVID-19 pandemic and the global drop in oil prices, Trend reports citing analytical data of the Renaissance Capital independent investment company.
“Azerbaijan, as one of the oil-exporting countries in the CIS, is expected to end 2020 with a moderate decline in GDP at 3.5 percent, which is considered a small indicator among the world oil-exporting countries,” said the company.
According to the statements, Azerbaijan has a balanced budget with a moderate deficit, a low level of public debt, and sufficient foreign exchange reserves to ensure sustainability even over a prolonged period of low oil prices.
The company also emphasized that there are no significant risks to the reduction of Azerbaijan's sovereign credit ratings.
“The baseline scenario for next year, assuming an oil price of $50 per barrel and a gradual increase in production, will help Azerbaijan's GDP growth to recover to 2.9 percent,” said the company.
Earlier, the Azerbaijani Ministry of Economy prepared three scenarios for economic development for 2021, and according to them, Azerbaijan's GDP growth should be up to 3.8 percent, depending on oil prices on world markets.
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