Fitch Solutions: Foreign sector will raise economic growth by 2.6 percentage points in two years

The external sector is likely to be a source of support in 2021 and 2022, adding 1.1pp and 1.5pp to growth in respective years, Report informs, citing Fitch Solutions company.

Owing to fairly robust economic recoveries in some of Azerbaijan's top export markets, mostly in the European Union, the country's exports have performed well in the first half of 2021.

Indeed, in nominal terms, while exports rose by 73.0% y-o-y in Q221, imports grew at a much slower rate of 21.0% y-o-y, indicating still sluggish domestic demand fundamentals.

"We expect export growth to continue to overshoot that of imports in 2021 and 2022, thereby allowing net exports to contribute positively to growth," the company said.