(MENAFN- AzerNews)
Ulviyya Shahin Read more
Fitch Solutions, the international credit ratings agency,predicts that energy exports will remain the primary catalyst forgrowth in Azerbaijan in the forthcoming years, Azernews reports.
The agency anticipates that although energy exports may notmatch previous levels of strength, they will continue to drivegrowth. Additionally, the government's efforts to diversify theeconomy away from the oil and gas sector will persist in the comingyears.
Fitch Solutions suggests that as Europe seeks to reduce itsreliance on Russian energy trade, Azerbaijan is expected toexperience increased demand from the EU.
The agency foresees a more stable growth trajectory forAzerbaijan over the next decade, with an average growth rate of3.1%, compared to 1.7% recorded between 2012 and 2022. Energyreserves, particularly gas, will remain a significant driver ofgrowth, with Europe projected to be a key consumer of Azerbaijanienergy.
Oil revenues have historically constituted a significant portionof Azerbaijan's GDP, making up nearly 30% since 2005 andcontributing over 75% of government revenues in recent years. FitchSolutions predicts that the proportion of GDP attributed to oil islikely to remain high in the foreseeable future.
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