World Bank outlines conditions for Azerbaijan's transition to high-income country status
Mar 14, 2025
The World Bank (WB) predicts that Azerbaijan will need approximately 22 years to transition to the group of high-income countries, assuming the country maintains an average annual growth rate of 4.9% in gross national income (GNI) per capita.
The WB told Report that the average annual growth rate of Azerbaijan's GNI per capita was 1.6% from 2012 to 2022 and 4.9% from 2007 to 2022.
In 2007, the GNI per capita in Azerbaijan was $2,730, rising to $4,820 in 2012, and $5,630 in 2022.
The WB also said the indicator made 1.4% in 10 years and 4.4% in 15 years in Kazakhstan, 0.9% and 3.5% in Belarus, 0.1% and 7.2% in Uzbekistan and 0.6% and 5.1% in Tajikistan.
WB notes that for countries in Europe and Central Asia (ECA) to transition to the high-income category, where the GNI per capita threshold is $14,005, structural reforms aimed at sustainable economic growth are necessary.
The WB also emphasizes that the region's sustainable development cannot be achieved without a shift to affordable and secure energy. This process has been complicated by the largest-ever shock to global natural gas markets following Russia's invasion of Ukraine in 2022. Rising gas and electricity prices have increased the region’s dependence on Russian energy resources, highlighting the need for energy diversification, reducing oil and gas imports, enhancing energy efficiency, and developing renewable energy sources.
Furthermore, to reduce emissions, the implementation of advanced technologies and the decarbonization of sectors like transport, industry, and heating will be required. This will lead to significant investments, especially in the public sector linked to fossil fuels.
According to the International Energy Agency (IEA), global investments in the energy transition should reach $4 trillion annually by 2030 (around 4% of global GDP in 2023). Additional investments to achieve carbon neutrality may require another 2% of GDP annually.
The WB believes that the transition to energy-efficient and environmentally clean technologies will reduce energy costs, improve business competitiveness, create new jobs, and foster innovation. Additional investments in the energy system will enhance the reliability of energy supply and reduce long-term costs. However, modernization requires significant investment and time, similar to other technological shifts, such as the transition from cars to mobile phones.
"However, inaction will be more costly. In Azerbaijan, Kazakhstan, and Romania, the damage from climate change already amounts to 1-2% of GDP per year, while in Uzbekistan, it exceeds 10%," the WB noted.
As in any technological transition, high initial costs will fall on consumers, businesses, and governments. To successfully implement this transition, countries in the ECA region will require foreign capital, technology, and managerial expertise. These measures will help reduce the energy intensity of the economy, cut emissions, and ensure sustainable economic growth," the WB emphasized.
Earlier, the WB outlined opportunities for Azerbaijan’s transition to the group of high-income countries.
According to Azerbaijan's State Statistics Committee, the GDP per capita in the country in 2024 is expected to be $7,283.
LATEST
Jul 01, 2025
Azerbaijan inks loan agreement with World Bank to expand renewable energy projects
News
The government of Azerbaijan and the World Bank have signed a loan agreement on “the project to expand the use of renewable energy sources in Azerbaijan”.
Jun 30, 2025
Azerbaijani ‘Cybersecurity’ course now available from EU4Digital Academy
News
Citizens and small and medium-sized enterprises (SMEs) in Azerbaijan are invited to learn how to secure their personal or professional digital life with the EU4Digital Academy ‘Cybersecurity‘ course.
Jun 27, 2025
EBRD launches program to improve efficiency of water sector in Azerbaijan
News
The European Bank for Reconstruction and Development (EBRD) has announced the launch of the Financial and Operational Performance Improvement Program (FOPIP) for the State Agency for Water Resources of Azerbaijan and its subordinate entities.
Jun 19, 2025
EuroVillage 2025 in Baku
News
EuroVillage 2025, a vibrant open-air festival hosted by the European Union is taking place on 22 June at Baku boulevard.
Jun 13, 2025
The third meeting of Azerbaijan-EU Energy Dialogue was held in Brussels
News
The third meeting of High-Level Energy Dialogue established to develop a strategic energy partnership between Azerbaijan and the European Union (EU) was held in Brussels, the Kingdom of Belgium, informs via Ministry of Energy.
May 30, 2025
EBRD and Unibank to support trade finance in Azerbaijan
News
The European Bank for Reconstruction and Development (EBRD) has approved a trade finance line of up to €4.4 million for Azerbaijani lender Unibank under its Trade Facilitation Programme (TFP).
May 19, 2025
EU delegation to Azerbaijan organizes Europe Day in Baku
News
Baku hosted an official reception Thursday organized by the European Union (EU) delegation to Azerbaijan, marking the Europe Day.
May 13, 2025
Azerbaijan and EU mull deepening cooperation in several areas
News
Azerbaijan and the European Union discussed deepening cooperation in several areas, Azerbaijani Economy Minister Mikayil Jabbarov said on X.
May 12, 2025
Discussions were held on the supply of "green energy" and hydrogen from Azerbaijan to Europe
News
A meeting was held between the Minister of Energy, Parviz Shahbazov, and the Director-General for Eastern Neighborhood and Enlargement Negotiations (DG ENEST) of the European Commission, Gert Jan Koopman.
Apr 26, 2025
Ilham Aliyev received EU High Representative and Vice-President of European Commission Kaja Kallas
News
On April 25, President of the Republic of Azerbaijan Ilham Aliyev received Kaja Kallas, High Representative of the European Union for Foreign Affairs and Security Policy and Vice-President of the European Commission.
Apr 18, 2025
The Eastern Partnership Business Forum was held in Warsaw
News
The Eastern Partnership Business Forum was held on April 15–16, 2025, at PGE Narodowy Stadium in Warsaw, bringing together high-level representatives from European Union member states and Eastern Partnership countries to explore current trends in economic cooperation, shared regional priorities, and prospects for future collaboration.
Apr 05, 2025
Baku hosted 11th Southern Gas Corridor Advisory Council Ministerial Meeting and 3rd Green Energy Advisory Council Ministerial Meeting
News
On April 4, the 11th Southern Gas Corridor Advisory Council Ministerial Meeting and the 3rd Green Energy Advisory Council Ministerial Meeting were held at the Gulustan Palace in Baku.