(MENAFN- AzerNews)
Ulviyya Shahin Read more
"The new and existing trade corridors will be a significant areaof investment growth in Azerbaijan in the next decade, Azernews reports, citing the report of FitchSolutions (FS).
Analysts at FS believe that the development of significant tradeinfrastructure along the North-South and East-West corridors canincrease state revenues from exports and transit payments.
It is noted that the Russia-Ukraine war has led to renewedglobal interest in the East-West trade route, connecting CentralAsia and the Caucasus to Europe via the Middle Corridor.
"The World Bank predicts that trade volume along the MiddleCorridor will triple by 2030. Azerbaijan, due to its Caspian Seacoast, will play a vital role in connecting Central Asia to theCaucasus and then to Europe through this trade route."
Additionally, Russia is interested in improving infrastructurealong the North-South corridor to increase trade with Iran andexpand southern exports.
"Indeed, from March 2023 to February 2024, rail shipmentsbetween Azerbaijan and Iran increased by 28%, and imports fromRussia to Azerbaijan also increased by 16% annually, reaching 3.2billion US dollars. Azerbaijan's strategic geographic positionbetween East and West, North and South, appreciates itsgeopolitical position as the chair of the Non-AlignedMovement."
The FS statement also notes that changes are expected toincrease the capacity for transportation between China and theEuropean Union fivefold via the Middle Corridor.
"We predict that despite a previous 3% decrease in fixedcapital, investment will increase by an average of 6.3% annuallyover the next five years."
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