Azerbaijan's strategic foreign exchange reserves have reached USD 85.8 billion, and this serves as a reliable financial buffer against external shocks, Aliyar Mammadyarov, First Deputy Chairman of the Central Bank of Azerbaijan, said during the presentation of the World Bank's "Azerbaijan Country Economic Memorandum – Spring 2026" report, APA-Economics reports.
According to him, although the global economy is facing geopolitical tensions, supply chain disruptions, and climate risks, Azerbaijan's external position remains favorable.
He noted that the financial sector continues to demonstrate resilience. The capital adequacy ratio stands at 17%, the liquidity coverage ratio at 155%, and the share of non-performing loans at 2.9%. Dollarization of loans has declined to 13.7%, while the dollarization rate of resident deposits has fallen to 27%.
The First Deputy Chairman of the Central Bank stated that three major structural changes are currently being observed in Azerbaijan's economy. The non-oil sector is playing an increasingly important role in economic growth, the sources of growth are shifting from non-tradable sectors such as construction to export-oriented sectors such as transport and logistics, information technology, and the non-oil industry, while economic growth is increasingly being driven by private sector activity rather than government spending.
According to Aliyar Mammadyarov, based on the Central Bank's May forecast, Azerbaijan's GDP is expected to grow by 1.1% this year and by 3.2% in 2027. Growth in the non-oil sector is projected at 3.2% and 4.7%, respectively.
He stressed that diversification will play a decisive role in the next stage of the country's economic development, and in this regard, the tourism sector has significant untapped potential. According to him, tourism revenues have increased by an average of 38% annually over the past three years as a result of expanded air connectivity, simplified visa procedures, and the promotion of tourism destinations. In the first quarter of 2026, exports of tourism services accounted for 21% of non-oil services exports.
Aliyar Mammadyarov added that the World Bank's recommendations on strengthening transport and information connectivity, developing regional tourism destinations, increasing private sector participation, and expanding investment in human capital are in line with Azerbaijan's long-term development priorities.
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