WB reveals threats to Azerbaijan’s sustainable economic growth

Over the medium and longer term, underlying structural weaknesses including an undiversified asset mix, heavy state economic footprint, institutional rigidities, an uneven private sector playing field, stagnating human capital indicators, and weak financial markets threaten Azerbaijan’s continued growth, according to the WB Europe and Central Asia Economic Update, Report informs.

In 2021, the Azerbaijani government presented its 2030 national development vision which aspires to address the country’s structural challenges, according to the document.

“Regional geopolitical tensions eased following the signing of a ceasefire agreement between Azerbaijan and Armenia in November 2020. Although the security situation remains fragile, reconstruction efforts are underway, and the authorities approved a program to rebuild damaged infrastructure and restart socioeconomic development in the conflict-afflicted areas,” reads the report.

The GDP growth rate is projected to rise to 5% in 2021 in Azerbaijan, according to the WB forecast. The Azerbaijani economy is expected to grow by 3.1% in 2022 and 2.7% in 2023.