BAKU, Azerbaijan, September 22. Azerbaijan has not only tripled its income per capita but also built up a strong financial position by wisely accumulating funds over the past three decades, said Timothy Cheston, Senior Manager at the Growth Lab at the Center for International Development at Harvard University, Trend reports.
Speaking at the 1st Azerbaijan International Investment Forum in Baku, Cheston underlined the country’s robust standing.
“Azerbaijan today enjoys one of the lowest levels of public debt in the world, while 96 percent of GDP is accumulated through the State Oil Fund and the Central Bank. This is a situation many developing and emerging economies would envy,” he stated.
He noted that new investments are being launched against this solid macroeconomic backdrop, and in the not-so-distant future, new facilities for churning out ethylene and propylene polymers will hit the ground running in Zeitz Chemical and Industrial Park, opening doors for growth in the chemical sector and paving the way for further strides along value chains.
According to Cheston, Azerbaijan was among the countries that recorded the sharpest rise in the Economic Complexity Index prepared by the "Growth Lab" last year.
“The new polymer plants and technological know-how open up additional opportunities. But the real game-changer will be the establishment of export-oriented free economic zones working with selective buyers. This is a major advantage for expanding Azerbaijan’s non-oil exports.
The TRIPP Corridor project is expected to move between $50 and $100 billion in cargo through Azerbaijan, offering more than a transit route. We see it as a strategic opportunity to develop new export products and integrate them into emerging value chains, positioning the corridor as a gateway not only to Türkiye but also to Europe.
While oil remains energy-dense and easy to transport, green energy presents a different challenge. Looking ahead, regions with abundant and affordable energy are likely to attract energy-intensive industries, with Azerbaijan aiming not only to export power but also to host these industries in its free economic zones, drawing investment from countries such as Germany,” Cheston added.
The Growth Lab is a research institution inside Harvard's Center for International Development that examines the mechanisms of economic growth and applies those findings to formulate successful policies for developing nations. Under the leadership of Ricardo Hausmann, the lab integrates academic research, policy initiatives, and digital instruments to foster inclusive prosperity by examining methods for countries to diversify their economies, enhance their production capabilities, and synchronize their expertise to develop more sophisticated and productive enterprises. Their work encompasses trademark approaches such as Economic Complexity and Growth Diagnostics, in addition to interactive web tools and policy collaborations with governments globally.
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