Favorable conditions in the global oil market are creating opportunities for Azerbaijan to build state reserves and pursue countercyc lical economic policy, while the country should accelerate structural reforms to strengthen the non-oil sector and attract private capital, World Bank Senior Economist for Azerbaijan Steve Loris Gui-Diby said at Fitch on Azerbaijan 2026 in Baku, Report informs.
"From our perspective, the change in the economic approach is a very positive step. High oil prices give the government an opportunity to accumulate reserves to support the economy during downturns. At the same time, there is a growing need to strengthen efforts to develop the non-oil sector ," the expert said.
According to the World Bank representative, fiscal policy should no longer remain the sole source of economic growth stimulus. With public capital investment declining, the private sector should take a leading role in the economy.
Gui-Diby highlighted the importance of further reforms aimed at creating a favorable business environment, reducing trade restrictions, strengthening competitiveness and reassessing the role of the public sector in the real economy.
According to World Bank forecasts, if the current fiscal policy is maintained, Azerbaijan could see slower economic growth over the next one to two years. However, this pause would give the private sector time to adapt to the new conditions, laying the foundation for more stable and dynamic growth in the medium term, within two to four years.