WB: Outcome of Armenia-Azerbaijan peace process important for region's economic prospects

The World Bank (WB) expects the peace agreement between Armenia and Azerbaijan, initialed in August 2025, to contribute to greater stability and deeper regional integration, reads the January edition of the WB's Global Economic Prospects update, Report informs.

"Geopolitical tensions remain a significant downside risk for ECA, with risk and uncertainty remaining elevated and exceeding pre-invasion levels. A prolonged extension or intensification of Russia's invasion could further weaken Ukraine's economy and sustain high geopolitical uncertainty. Potential setbacks in the Armenia-Azerbaijan peace process also add to downside risks. Conversely, an earlier-than-expected end of hostilities associated with Russia's invasion could accelerate reconstruction-driven investment in Ukraine and boost regional investor confidence. Progress in the Armenia-Azerbaijan peace process could strengthen South Caucasus integration," reads the update.