Azerbaijan needs faster growth in non-oil economy, PASHA Holding says

The expansion pace of Azerbaijan's non-oil and gas economy needs to accelerate significantly and requires deep structural reforms, while major sectors continue to have substantial development potential, PASHA Holding Chief Economist Elman Eminov said at "Fitch on Azerbaijan 2026" in Baku, Report informs.

According to his assessment, forecasts by several international and national institutions currently put the expected growth of Azerbaijan's non-oil and gas GDP at between 3.5% and 4%.

"We see that expectations for growth in the non-oil sector fall within this range. At the same time, the fundamental question is what trajectory awaits us over the medium term: will we remain within this range, or will we manage to exceed its upper limit? Given that non-oil growth stood at 2. 7% in 2025 and is forecast at just over 2% for the current year, acceleration becomes a necessity," Eminov said.

He said that achieving higher economic growth requires a change in the economic paradigm and comprehensive structural reforms, noting that Azerbaijan has significant untapped potential across a number of sectors.

Eminov identified transport and logistics, agriculture, tourism and housing construction among the main potential drivers of growth.

According to him, transport and logistics could benefit from the development of the Middle Corridor and increased transit flows; agriculture could expand through bringing 20% of the liberated territories into economic use; tourism could grow by increasing visitor numbers from 3 million to 5-6 million; and housing construction could be supported through land reforms aimed at addressing housing shortages.

"Each of these areas has considerable potential. Structural reforms are not only a necessary condition for accelerating economic growth, but also create significant prospects for the country's development," he concluded.