Moody’s: Middle Corridor and investment across Azerbaijan are driving economic prospects

The rising prominence of the so-called Middle Corridor as an important transport node between Europe and Asia and investment across the country are driving economic prospects, although the impact on economic strength will only become tangible over time, Moody’s said in a statement affirming the Government of Azerbaijan's issuer and foreign currency senior unsecured ratings at Ba1, Report informs.

“Rising activity across the Trans-Caspian International Transport Route – also known as the Middle Corridor – underpins robust performance in the transport and logistics sector. Prospects of further growth in this sector given the route's increasing importance as an alternative channel for trade between China and the EU would support further diversification of the economy,” Moody’s said.

“In turn, a larger and more diversified transport and logistics sector would have greater positive spillovers across the economy which could strengthen Azerbaijan's resilience to shocks and credit profile. Further progress on economic diversification could also over time extend to more diversified sources of government revenue and foreign-currency revenue,” reads the statement