As If Nothing Happened?

Author(s): Gerald Hübner
Editor(s): Iris Kempe, Matthias Neumann, Robert Orttung, Jeronim Perovic, Lili Di Puppo
Series: Caucasus Analytical Digest (CAD)
Issue: 18
Pages: 4-9
Publisher(s): Center for Security Studies (CSS), ETH Zurich; Jefferson Institute, Washington D.C.; Heinrich Böll Foundation, Tbilisi; Research Centre for East European Studies, University of Bremen
Publication Year: 2010

Since Azerbaijan seems to have coped with the impact of the global financial crisis far better than initially expected, it is worth taking a closer look at this country which seems far away from the stormy international fore of private sector and sovereign crises. Azerbaijan's financial sector had only limited exposure to international markets and the country's sovereign balance sheet is strong with a public debt ratio that is one of the lowest of all transition countries. However, the country depends heavily on its oil exports, so Azerbaijan felt the crisis directly through the high volatility of world oil prices. As a consequence, state authorities had to design effective policies to steer the economy through stormy weather.

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