CBA expects current account excess for year

According to recent updates, Azerbaijan is poised to generate a surplus in its current account by the end of 2024 if the nation's current trends persist, Azernews reports, citing the Central Bank of Azerbaijan (CBA).

"The surplus in the trade balance, which is the main component of the balance of payments, amounted to $2.3 billion in the first quarter of this year," the Central Bank (CBA) reports.

The International Monetary Fund (IMF) forecasts Azerbaijan's current account surplus to be at 8.5% of GDP for 2024. Meanwhile, the World Bank predicts Azerbaijan's medium-term current account surplus to be at 7.5% of GDP.

It's worth noting that in 2023, Azerbaijan's current account surplus amounted to $8,329.4 million or 11.5% of GDP. Compared to 2022, the surplus decreased by 64.5% or 2.8 times, which is attributed to the depreciation of oil and gas in 2023.

Based on the balance of payments, the average price of oil per barrel was $85.9 in 2023, whereas it was $103.7 in 2022.

The surplus in the oil and gas sector amounted to $17,091.5 million (a 40.4% decrease), while in the non-oil and gas sector, it amounted to $8,762.1 million (a 68.9% increase).