The pace of Azerbaijan's economic diversification will depend on the reforms planned for 2027–2030. Monetary policy can support this process but cannot drive it on its own, Central Bank of Azerbaijan (CBA) Chairman Taleh Kazimov said in an interview with Global Finance magazine.
Report quotes him as saying economic diversification requires price and exchange rate stability, a resilient banking system, and a market environment that enables long-term savings to be channeled into productive investment.
The CBA's primary task is to ensure macroeconomic and financial stability, Kazimov stressed.
The central bank chairman said that the non-oil sector accounted for around 70% of Azerbaijan's economy in the first half of this year. During this period, transport and logistics grew by 8%, information and communications by 7.5%, and non-oil industry by 4.1%. Construction, however, contracted by 13%.
Investment in the non-oil sector increased by 5.5% during the reporting period.
"This growth was driven mainly by a 20.8% increase in private-sector investment, while public investment declined by 3.8%," the CBA chairman noted.