Baku. TurkicWorld:
Azerbaijan's average inflation rate is expected to reach 10.1 percent in 2023, falling to six percent in 2024, TurkicWorld reports.
The data of Fitch Ratings forecasts that annual inflation will approach the ceiling of the Central Bank of Azerbaijan's (CBA) target range (4±2 percent) by the end of 2023.
Fitch notes that the decline in annual inflation is due to the nominal effective growth of the Azerbaijani manat exchange rate against Azerbaijan's main trading partners, such as Türkiye and Russia, and the decline in world food prices.
It should be noted that the International Rating Agency "Fitch Ratings" has affirmed Azerbaijan's long-term foreign currency issuer default rating at "BB+".
"Positive" outlook reflects strengthening of external and fiscal reserves due to higher-than-budgeted energy prices, as well as greater spending restraint.
Fitch estimates that the rating is supported by Azerbaijan's very strong external balance sheet, the lowest level of public debt among comparable countries and high financial flexibility due to the large assets of the sovereign wealth fund.
