World Bank Projects Moderate Growth for Azerbaijan's Economy in 2024 and 2025

In its January report on "Global Economic Prospects," the World Bank anticipates a modest growth trajectory for Azerbaijan's Gross Domestic Product (GDP) in the coming years. The projections indicate a growth rate of 2.4% for 2024 and a slight uptick to 2.5% in 2025. This follows an estimated GDP growth of 1.5% for the year 2023, as per World Bank figures.

The World Bank's analysis extends beyond Azerbaijan, encompassing the economic prospects of the broader South Caucasus region. The report anticipates an average annual growth of 3.3% for the region in the years 2024-2025. While acknowledging a potential reduction in remittances from Russia, the report suggests that economic activity in the South Caucasus will be sustained by re-export and tourism. However, the region's long-term growth prospects remain hindered by factors such as commodity dependence, weak transport links, logistics challenges, and the persisting geopolitical tensions between Armenia and Azerbaijan.

Specifically, the World Bank projects Georgia's GDP to grow by 4.8% and 4.5% in 2024 and 2025, respectively, a slight decrease from the 6.5% growth recorded in 2023. Similarly, Armenia's GDP growth is forecasted at 4.7% and 4.5% for 2024 and 2025, following a robust 7.1% growth in 2023.

It is noteworthy that the World Bank's January forecasts for Azerbaijan align closely with those made in October 2023, reflecting a degree of stability in the bank's economic outlook for the country.—0—