Fitch forecasts GDP growth of 3.6% in 2022, from 5.6% in 2021, with weakening momentum from 2022, partly due to base effects and higher inflation eroding real incomes in Azerbaijan.

Axar.az reports referring to Agency.

"We project growth slows to 2.0% in 2023, below the 'BB' median of 3.5%, with stagnating energy production as expansion in the gas sector offsets a gradual decline in oil production. Fitch continues to see weak prospects for structural reform of the large and inefficient state-sector that constrains non-oil private sector investment, economic diversification, and overall trend GDP growth," Fitch added.