The services sector could play an important role in Azerbaijan’s future economic growth, World Bank Lead Country Economist for Azerbaijan Steve Loris Gui-Diby said at the “Fitch on Azerbaijan” event held in Baku, APA-Economics reports.
According to him, Azerbaijan has certain potential in terms of sustainability and the development of “green” products. Preliminary analyses conducted by the World Bank in this area also indicate that there is potential.
However, Gui-Diby noted that realizing this potential may take time, and the process is closely linked to attracting foreign direct investment. To this end, it is important to create an investment environment that makes it easier for investors to operate in the country.
Speaking about Azerbaijan’s future economic growth opportunities, the World Bank official said that the development of the manufacturing sector faces certain challenges. According to him, the size of the country’s domestic market may not be a major attraction for foreign investors, while there is also competition in accessing regional markets.
In this regard, Gui-Diby noted that the services sector is one of the more promising areas for Azerbaijan.
“In the services sector, factors such as being landlocked and distance do not create constraints to the same extent. Azerbaijan has business, talent, knowledge and human capital,” he said.
According to him, the next issue is to remove restrictions that may prevent foreign and local companies from taking advantage of these opportunities, reduce the costs of providing services and create a more predictable framework for investors.
Gui-Diby added that implementing the relevant reforms could enable Azerbaijan to develop its services sector and expand exports of services in the future.
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