WB evaluates Azerbaijan's macroeconomic stability, economic growth prospects

Azerbaijan's economy continues to demonstrate a high level of macroeconomic stability, while GDP growth rates remain modest, World Bank Regional Director for the South Caucasus Rolande Pryce said at the CAMCA Regional Forum 2026 in Baku, Report informs.

"Azerbaijan features a stable economic position, possesses substantial financial reserves, and has a low level of public debt thanks to balanced fiscal and monetary policy. However, economic growth rates remain fairly low," Pryce pointed out.

She explained that the current slowdown in economic growth is linked to a decrease in state capital investments, falling production volumes in the oil and gas sector - which forms the foundation of the national economy -, as well as modest activity in the non-oil sector.

"Without structural transformations, short- and medium-term economic growth risks settling below 2% annually. A key task for Azerbaijan in the medium term is converting existing macroeconomic reserves into new investment flows, labor productivity growth, and economic diversification. This requires steps to improve business conditions, strengthen the competitive environment, and support private sector activity," the WB regional director emphasized.