Immune to the global economic crisis
Overview:
Azerbaijan has recorded extraordinary rates of economic growth and massive current account surpluses over the last few years. While the economy’s over-reliance on oil and gas are a concern in the long-term this has meant that it has been immune to the global economic downturn. Not only has economic growth been aided by high oil and gas prices but production expanded significantly with the completion of Stage 1 of the Shah Deniz project. Economic growth will remain strong, though less spectacular, in the next few years. This is not, though, due to the global crisis but delays in bringing Stage 2 of Shah Deniz online. The authorities manage the oil and gas bonanza relatively well by funnelling much of the windfall into the State Oil Fund. There are still concerns, though, about a sharp real appreciation of the Manat.