Baku: Azerbaijan’s public debt stands at a comparatively low level among the countries of the Caucasus and Central Asia (CCA), said Thanos Arvanitis, Deputy Director of the IMF’s Middle East and Central Asia Department, APA reports.

According to Azeri-Press News Agency, Arvanitis noted that many CCA countries are pursuing fiscal consolidation, which is crucial for keeping debt burdens at sustainable levels. He explained that debt burdens are relatively low in Kazakhstan and Azerbaijan, at about 30% to 40% of GDP for most countries in the region, while Armenia’s debt is slightly higher. Overall, the fiscal stances remain manageable in the region.

Regarding the external sector, Arvanitis stated that it has played a strong role in supporting economic growth in recent years. He pointed out that exports continue to grow into 2024, although the pace has slowed compared to the previous year. Nonetheless, exports, remittances, and financial flows remain strong and supportive of the economy in the CCA countries.

He also emphasized that the growth momentum has continued into early 2025, providing a solid outlook for the year. However, he warned that rising global uncertainty, driven by trade tensions among major economies, may pose risks to growth. Arvanitis concluded that the ongoing momentum from last year and the emerging headwinds from global uncertainty must be considered when setting policy priorities.