Share of current account surplus projected at 5% of Azerbaijan's GDP in medium term

The share of the current account surplus in the medium term is projected at an average of 5 percent of Azerbaijan's GDP, considering the forecast of $50 per barrel of oil in 2022-2025, Report informs, citing the bill "On the state budget envelope for 2022."

According to the document, due to the policy of economic diversification, non-oil exports are expected to double in 2025. As a result, the ratio of the current account's non-oil deficit to non-oil GDP is expected to fall to 7 percentage points in 2025 compared to 2019.

The forecast shows that the current account surplus will reach $1.7 billion in 2022, $2.847 billion in 2023, $3,209 billion in 2024, and $3.057 billion in 2025.

The surplus of the foreign trade balance will be $4.197 billion in 2022, $5.29 billion in 2023, $5.705 billion in 2024 and $5.431 billion in 2025.

In 2022, the oil and gas sector surplus will be $11.332 billion, while the foreign trade deficit in other sectors is projected at $7.134 billion. In 2023, it is projected to be $12.603 billion and $7.312 billion, respectively, $13.110 billion and $7.405 billion in 2024, $12.856 billion and $7.425 billion in 2025.