Caspian Wealth

Welcome to #Azerbaijan https://lnkd.in/ehq7djmy

**Fitch Ratings Upgrades Azerbaijan to 'BBB-'; Outlook Stable** Fitch Ratings has upgraded Azerbaijan's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'BBB-' from 'BB+'. The rating outlook is stable. ### Key Drivers for the Upgrade: 1. **Robust External Balance Sheet**: Azerbaijan's foreign currency assets are substantial, nearing USD74 billion in 2024, equating to 98% of projected GDP. This is a significant improvement from 55% in 2010. The country’s net sovereign asset position is projected at 71% of GDP, the highest among 'BBB' and 'A' rated countries.     #ExternalBalance #SovereignAssets #GDP 2. **Continued Current Account Surpluses**: The current account surplus, while expected to decline from 9.3% of GDP in 2024 to 6.4% by 2026, remains strong compared to other 'BBB' rated countries. Azerbaijan’s net external creditor position is expected to reach 154% of GDP in 2024, also the strongest among 'BBB' sovereigns.     #CurrentAccount #NetExternalCreditor #TradeSurplus 3. **Fiscal Surpluses**: The government’s fiscal policy aims to maintain robust external assets and manage oil price volatility. Continued fiscal surpluses are anticipated, though reducing the non-oil primary deficit by 2027 may be challenging.     #FiscalPolicy #OilPriceVolatility #PublicFinances 4. **Reduced Foreign-Currency Vulnerabilities**: Strengthened sovereign external buffers and improved fiscal management enhance resilience to external shocks and oil price volatility.     #ForeignCurrency #EconomicResilience #ExternalBuffers 5. **Low Government Debt**: Government debt is projected to be low at 22.7% of GDP by 2026, one of the lowest among Fitch's investment-grade sovereigns.     #GovernmentDebt #DebtSustainability #InvestmentGrade 6. **Developing Monetary Policy**: The Central Bank of Azerbaijan (CBRA) has improved its capacity to manage liquidity and monetary policy, although challenges remain due to an under-developed capital market and high financial dollarization.     #MonetaryPolicy #CentralBank #FinancialDollarization ### Additional Considerations: - **Inflation**: Expected to average 3.5% in 2024, rising to 4.7% by 2026.     #Inflation #PriceStability - **Growth**: Projected to recover to 3.2% in 2024, with a gradual slowdown expected in the following years.     #EconomicGrowth #Recovery #Azerbaijan - **Peace Negotiations**: Ongoing talks with Armenia may impact stability and future ratings, but Fitch does not anticipate a full-scale military escalation.     #PeaceTalks #Azerbaijan #Stability #InvestinAzerbaijan https://lnkd.in/eSUyZMVU.

https://lnkd.in/e7xuhuZx The most exciting aspect of frontier markets is their dynamic growth. I recall a moment from 2005, standing on my balcony in a new city, feeling an exhilarating sense of opportunity. It was a period of vibrant growth, but as time passed, that freshness faded. Today, the energy in frontier markets remains as invigorating as ever. What makes frontier markets so compelling? Rapid Development: Unlike developed economies, frontier markets are constantly evolving with new construction and innovation. High Potential: These markets, though riskier, offer significant growth opportunities. They often bypass global recessions due to their isolation from the global monetary system. Investment Strategies: Opportunities abound in real estate, starting new businesses, or funding existing ventures. The key is to identify high-potential markets by assessing factors like GDP, population growth, health, urbanization, and ease of doing business. Challenges and Considerations: Investing in frontier markets comes with its challenges—poor infrastructure, complex regulations, and local nuances can pose obstacles. However, with thorough research and local connections, these challenges can be navigated successfully. Key Trends for Growth: High Population Growth: Drives productivity and economic expansion. Urbanization: Increases productivity and attracts investment. Health Improvements: Can significantly boost economic growth. Ease of Doing Business: Essential for smooth operations. For those intrigued by the potential of frontier markets, it's crucial to understand both the risks and rewards. Whether through direct investment or partnering with local experts, the opportunities for substantial returns are considerable. Ready to explore? Let’s connect and discuss how we can navigate these exciting frontiers together! #FrontierMarkets #InvestmentOpportunities #GlobalGrowth #EmergingMarkets #RealEstate #BusinessStrategy #EconomicDevelopment

Fitch affirms #Azerbaijan at BB+ , outlook positive. One step from investment grade. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade -Public Finances: Greater confidence that the strong public balance sheet will be preserved, for example, due to continued expenditure restraint or prolonged high energy prices. -Macro: Greater confidence that improvements in the effectiveness and predictability of Azerbaijan's policy framework will help the economy manage external shocks and reduce macro volatility. -External Finances: Further strengthening of the external balance sheet, for example, due to sustained high energy revenues. https://lnkd.in/eq4ymqAt

Fitch affirms #Azerbaijan at BB+ , outlook positive. One step from investment grade. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade -Public Finances: Greater confidence that the strong public balance sheet will be preserved, for example, due to continued expenditure restraint or prolonged high energy prices. -Macro: Greater confidence that improvements in the effectiveness and predictability of Azerbaijan's policy framework will help the economy manage external shocks and reduce macro volatility. -External Finances: Further strengthening of the external balance sheet, for example, due to sustained high energy revenues. https://lnkd.in/eq4ymqAt

The Management Board of Central Bank of Azerbaijan approved the “Financial Sector Development Strategy 2024-2026”. Strategic targets include a comprehensive infrastructural development of capital markets, strengthening and maintaining the market’s confidence to the Sector, expanding the market access routes and broadening the range of investment product offerings. #investinazerbaijan #frontiermarkets #azerbaijancapitalmarkets #azerbaijan

Port of Baku #investinazerbaijan #silkroad #azerbaijan