Baku: Azerbaijan has been correctly prioritizing economic diversification, according to Anna Bordon, IMF Advisor and Head of the Article IV Mission to Azerbaijan, APA-Economics reports. Bordon highlighted the nation’s strategic focus amidst a slowdown in economic growth to 1.4% in 2025, following a higher level in 2024.
According to Azeri-Press News Agency, Bordon emphasized the importance of sustained fiscal consolidation and diversification beyond oil and gas production, considering the declining hydrocarbon reserves. The continuation of fiscal consolidation, strengthening the monetary policy framework, and implementing the Financial Sector Assessment Program (FSAP) recommendations are essential for ensuring medium-term domestic and external stability.
Azerbaijan’s commitment to economic diversification could be enhanced by addressing informal employment, boosting labor productivity, expanding financial markets, increasing the efficiency of state-owned enterprises, and reducing the state’s role in the economy.