BAKU, Azerbaijan, The Central Bank of Azerbaijan (CBA) expects that next year the ratio of state budget expenditures to GDP will exceed 30 percent, Trend reports citing the CBA.

According to the bank, in 2023, public demand will play a huge role in supporting economic activity. If the budget rule continues to be applied next year, the implementation of the strategy for reducing the non-oil fiscal deficit and borrowing becomes important from the point of view of ensuring long-term fiscal stability.

Considering the high variability of the functioning environment of the Azerbaijani economy, the CBA will continue to regularly update macroeconomic forecasts for various scenarios next year.

“In 2023, the main factors affecting Azerbaijan’s balance of payments will be world prices for major export products, the macroeconomic situation in trading partners, and the realization of the export potential of non-oil products and services. According to estimates, the remainder in the current account of the balance of payments is also expected in 2023. Diversification of the export structure leads to a decrease in the role of the oil price which balances the current account,” said the bank.

Source: TREND News Agency