WB evaluates resilience of Azerbaijan's economy amidst global uncertainty

Azerbaijan's economy approached the current stage of global and regional instability with a significant buffer of resilience, but experiences pressure from inflation and faces the task of accelerating diversification, World Bank Senior Economist for Azerbaijan Steve Loris Gui-Diby stated during "Fitch on Azerbaijan 2026" in Baku, Report informs.

"The entire region is going through a difficult period driven by tariff policies and geopolitical instability. Regional GDP growth rates declined from 2.6% to 2.1–2.2%. At the same time, Azerbaijan entered this period from stronger positions - thanks to significant fiscal and external reserves, low government debt, and stable international reserves," Gui-Diby stated.

According to his assessment, the main challenge for the country remains the rise of imported inflation.

"Azerbaijan imports substantial volumes of goods, which exerts pressure on domestic price levels. This, in turn, leads to an increase in credit rates in the banking sector, as financial institutions price in risks and tighten conditions for borrowers," the World Bank representative emphasized.

The bank economist focused attention on the fact that in the strategic perspective, the main priority for Azerbaijan is accelerated economic diversification and supporting the development of the non-oil sector.