"Azerbaijan's economic growth is projected to remain at an average of 1.7% between 2025 and 2027," APA-Economics reports, citing World Bank.
Noted that this is due to the tightening of fiscal policy against the backdrop of falling oil prices. Inflation is expected to remain within the Central Bank's target range. Risks include prolonged low growth and a sharper decline in energy prices. While there are sufficient reserves against short-term risks, long-term sustainability will depend on the success of efforts to diversify the economy through structural reforms.
It was emphasized that investment levels in the country have been around 20% of GDP in recent years. This is mainly due to a decrease in public investment against the backdrop of declining oil and gas revenues. Domestic private investment is mainly concentrated in inward-oriented sectors — for example, construction.
The report emphasizes the importance of structural reforms to benefit from the potential of the private sector. These reforms may include increasing policy stability, improving a level playing field, expanding access to financial resources, and strengthening the judicial system.
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