The World Bank Group's strategy in Azerbaijan focuses on addressing key development challenges and opportunities in the country by supporting initiatives to diversify the economy, create jobs and improve productivity, enhance public sector management, and address climate change.
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.
The Medium-term Expenditure Framework program seeks to strengthen the efficiency, strategic orientation and transparency of public expenditure in Azerbaijan.
The Human Capital Index quantifies the contribution of health and education to the productivity of the next generation of workers. Countries can use it to assess how much income they are foregoing because of human capital gaps, and how much faster they can turn these losses into gains if they act now.
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