Baku: Azerbaijan’s current account balance is projected to maintain a surplus of approximately 3% from 2025 to 2028.

According to Azeri-Press News Agency, citing S and P Global Ratings, this positive outlook is attributed to Azerbaijan’s robust external balance, which is bolstered by substantial foreign currency assets held by the State Oil Fund (SOFAZ).

S and P Global Ratings highlighted that these financial buffers grant Azerbaijan significant resilience against potential external shocks. The agency pointed out that Azerbaijan’s external liquid assets are expected to surpass the country’s external debt until at least 2028. Furthermore, the nation’s net international investment position is anticipated to remain around 76% of GDP during the period from 2025 to 2028.

Despite Azerbaijan’s economy being susceptible to fluctuations in trade terms, S and P noted that the country’s substantial net external assets mitigate the impact of adverse price cycles on its external liquidity and overall economy. S and P
‘s forecast indicates that the current account balance will average approximately 3% of GDP between 2025 and 2028.

S and P also mentioned the possibility of a minor deficit emerging in 2028. This could occur due to the stabilization of hydrocarbon production and an increase in import demand driven by investment needs.