Baku:Azerbaijan benefits from a favorable economic position due to its low public debt, substantial international reserves, and robust fiscal and external standings, as highlighted by Steve Loris Gui-Diby, a World Bank Senior Country Economist for Azerbaijan, during the 'Fitch in Azerbaijan' event.

According to Azeri-Press news agency, the broader region has encountered several challenges recently, resulting in a slowdown in economic growth from approximately 2.6% to between 2.1% and 2.3%. Despite this, the region has shown a degree of resilience.

Gui-Diby noted that high inflation is impacting the purchasing power of the population and investment opportunities. Increased fertilizer prices could affect agricultural production, and economic uncertainty might cause companies to be more cautious with investments.

He emphasized Azerbaijan's strong fiscal and external positions, low public debt, and significant international reserves as positive economic factors. However, Azerbaijan's reliance on imported equipment and products means that external price increases could exacerbate domestic inflationary pressures.

Additionally, Gui-Diby discussed how financing conditions affect investment, indicating that higher risk premiums might restrict credit access, especially for less resilient companies. He also pointed out that economic diversification remains a significant challenge for Azerbaijan, although there are opportunities for progress in this area.