Baku:The services sector is poised to become a significant driver of Azerbaijan's future economic growth, according to Steve Loris Gui-Diby, World Bank Lead Country Economist for Azerbaijan. He shared these insights at the 'Fitch on Azerbaijan' event in Baku.

According to Azeri-Press news agency, Gui-Diby emphasized that Azerbaijan possesses potential in sustainability and the development of 'green' products. Preliminary analyses by the World Bank suggest that the country has untapped potential in these areas.

However, Gui-Diby noted that capitalizing on this potential will require time and is heavily dependent on attracting foreign direct investment. He stressed the importance of creating an investment-friendly environment to facilitate investor operations in Azerbaijan.

While discussing economic growth opportunities, Gui-Diby highlighted the challenges faced by the manufacturing sector, such as the limited appeal of Azerbaijan's domestic market to foreign investors and competition in regional markets. In contrast, he identified the services sector as more promising due to fewer constraints related to being landlocked and distant.

He pointed out that Azerbaijan possesses business acumen, talent, knowledge, and human capital, which are advantageous for the services sector. To harness these opportunities, Gui-Diby recommended removing barriers for foreign and local companies, reducing service provision costs, and establishing a predictable investment framework.

Implementing these reforms, he added, could enable Azerbaijan to advance its services sector and increase service exports in the future.