Central Bank head upbeat on Azerbaijan's economy due to growth in two decades

During the World Bank’s event on the middle-income trap, Taleh Kazimov, Chairman of the Central Bank of Azerbaijan, emphasized the country’s economic achievements over the past two decades and outlined a strategy to ensure sustainable growth and avoid the middle-income trap.

Kazimov highlighted that Azerbaijan’s economy has grown approximately 3.8 times over the last 20 years, with the non-oil sector expanding by 3.7 times. The country’s Strategic Foreign Reserve now accounts for 75% of its total GDP, reflecting strong fiscal discipline and a favorable external position. Despite these successes, he stressed the importance of transitioning from a resource-based economy to a diversified, high-value-added economy.

“Azerbaijan’s long-term growth depends on enhancing exports of both goods and services while attracting foreign direct investment (FDI) to drive innovation and transfer know-how,” Kazimov said. He also underlined the role of a robust macroeconomic framework, counter-cyclical fiscal and monetary policies, and greater coordination among economic institutions in achieving this goal.

The Central Bank of Azerbaijan will focus on key priorities, including implementing the Financial Sector Development Strategy 2024–2025, strengthening the resilience of the banking sector, and developing digital financial services to improve financial inclusion. The strategy aims to boost financing for sectors with a competitive advantage and support domestic and foreign investment in innovation.

Kazimov concluded by inviting stakeholders to engage in discussions on the findings of the World Bank’s World Development Framework 2024 and emphasized the importance of aligning Azerbaijan’s policies with the World Bank’s Country Partnership Framework for 2025–2029, which aims to support sustainable and inclusive growth.