Azerbaijan's peace efforts may fuel South Caucasus growth, says pundit

Azerbaijan’s peace initiatives could lead the South Caucasus into a new phase of development, Valeri Chechelashvili, head of the Georgia Strategic Research Centre, said in comments to Report regarding the region’s economic potential and future development outlook.

He emphasised that Azerbaijan stands as the largest economy in the region, with an annual gross domestic product of around $75 billion.

"Whereas Georgia's economy generates $42 billion per year, and Armenia's economy creates approximately $33 billion in value. For this reason, Azerbaijan's role in shaping the overall economic and political landscape in the South Caucasus is of particular importance," Chechelashvili stated.

The expert stressed that the peace initiatives promoted by Azerbaijan are designed to turn the region into an area of stability, integration, and growth, underlining the significance of this process.

"However, there is still much work to be done ahead. Overall, when we take the economies of the three countries together, this figure is even smaller than Slovakia's economy. But new conditions, especially the establishment of both Azerbaijan-Armenia and Armenia-Türkiye diplomatic relations after the signing of a peace agreement, will bring the region to a completely new stage," he continued.

Chechelashvili further noted that this trajectory could attract greater investment, unlock new opportunities, and boost economic activity across the South Caucasus. He added that the possibility of doubling the region’s economy within the next five years appears realistic.

By Jeyhun Aghazada