Baku:Continuing structural and institutional reforms that support private sector development is crucial for enhancing Azerbaijan's long-term economic growth, stated Steve Loris Gui-Diby, World Bank Senior Country Economist for Azerbaijan, at the 'Fitch in Azerbaijan' event.

According to Azeri-Press news agency, Gui-Diby highlighted the importance of understanding the differences in economic structures when comparing Azerbaijan's growth rate with neighboring countries like Kazakhstan and Uzbekistan. He noted that while Kazakhstan shares similarities with Azerbaijan due to the role of natural resources in their economies, it also faces high inflation despite robust growth.

Gui-Diby stressed the need for Azerbaijan to diversify its economy and reduce its reliance on the oil and gas sector. He pointed to Uzbekistan's recent broad reforms as an example and suggested that Azerbaijan could benefit from reforms aimed at expanding private sector opportunities.

Potential measures to support this development include attracting foreign direct investment, facilitating and protecting investor activities, and removing market entry restrictions. Gui-Diby also noted the significance of enhancing productivity, with the World Bank currently analyzing productivity trends in Azerbaijan to identify areas for labor and capital reallocation.

Emphasizing the World Bank's approach to long-term growth, Gui-Diby outlined the importance of investment, technology adoption, and innovation. He suggested that after infrastructure investment, the focus should shift to expanding technology adoption via foreign investment and knowledge transfer, followed by boosting innovation capacity to sustain economic growth.