The World Bank in Azerbaijan

Azerbaijan’s rapid economic growth over the past two decades was accompanied by a significant fall in poverty rate. The rise in poverty due to the COVID-19 pandemic and the impact of Russia’s invasion of Ukraine appears to have leveled off. Buoyant energy prices sustained sizable external and fiscal surpluses. In the medium-term, growth is projected to converge to about 2.5% as the fall in crude oil production will ease and non-energy sector growth picks up. Improving shared prosperity and reducing inequality remains an important goal for Azerbaijan. Azerbaijan’s hosting of COP29 in November 2024 may be an opportunity to boost climate mitigation and adaptation efforts.