Evaluation of Azerbaijan State Borrowing From a Macroeconomic Perspective

Abstract

This study examines the effects of public debt on macroeconomic indicators and economic growth in the case of Azerbaijan. Public debt is an important instrument used by governments to finance infrastructure investments, social programs and economic development projects. However, high debt levels can increase interest rates, crowd out private investment and pose fiscal sustainability risks. In natural resource-rich economies such as Azerbaijan, the management of public debt is further complicated by fluctuations in global commodity prices. In this study, the relationship between public debt and interest rates and its impact on economic growth are discussed, emphasizing that debt management is critical for sustainable development. In line with Azerbaijan's economic diversification goals, the need for effective planning and management of debt-financed investments comes to the fore.