Continuing structural and institutional reforms that support private sector development is important for accelerating Azerbaijan’s long-term economic growth, Steve Loris Gui-Diby, World Bank Senior Country Economist for Azerbaijan, said at the “Fitch in Azerbaijan” event held in Baku, APA-Economics reports.
Responding to a question about Azerbaijan’s lower economic growth rate compared with Kazakhstan and Uzbekistan, he noted that differences in the economic structures of countries should be taken into account when comparing their economic performance.
Gui-Diby said Kazakhstan is in some respects a comparable country for Azerbaijan because natural resources play an important role in both economies. At the same time, he emphasized that Kazakhstan is experiencing high inflation alongside strong economic growth.
According to him, one of the main priorities for Azerbaijan is to continue diversifying the economy and reducing dependence on the oil and gas sector.
The World Bank official noted that Uzbekistan has implemented broad reforms in recent years and said that, for Azerbaijan, reforms that expand opportunities for private sector activity will also be important at the next stage.
Gui-Diby said measures in this area could include attracting foreign direct investment, facilitating and protecting investor activity, promoting investment, and removing existing restrictions on market entry.
He said productivity is another important area for economic growth. The World Bank is currently working on an analysis of productivity across companies and sectors in Azerbaijan, as well as opportunities to direct labor and capital toward more productive areas.
Gui-Diby emphasized the importance of three “I” factors in the World Bank’s approach to long-term growth: investment, infusion — the adoption of technology and knowledge — and innovation.
According to him, after infrastructure investment, the next stage could involve expanding technology adoption through foreign investment and knowledge transfer, followed by increasing innovation capacity, which could support long-term economic growth.
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