ArmInfo.With proper management, Armenia can narrow its economic gap with Azerbaijan within a certain period of time. This opinion was expressed by Narek Karapetyan, a member of the political council of the "Strong Armenia" bloc, in a video posted on his Facebook page.
According to him, many say Armenia has no chance, since Azerbaijan, thanks to petrodollars, will become a highly developed country – the strongest in the region. However, Karapetyan noted that "Strong Armenia" believes the opposite. "We believe the opposite. Within a certain period of time and with proper management, Armenia can reduce the economic gap with Azerbaijan," the member of the political council stated.
Clarifying how this could be achieved, Karapetyan Karapetyan pointed out that 90% of Azerbaijan's exports consist of oil and gas, which also account for the majority of the country's state budget. He noted that Azerbaijan currently extracts 500,000 barrels of oil per day, compared to 750,000 barrels seven years ago—representing a 30% drop in oil production over seven years. Looking at global trends, Karapetyan noted that global oil consumption currently stands at around 106 million barrels per day. While consumption has grown annually up to this point, he believes that within six years, driven by the proliferation of electric vehicles, peak demand will pass and production will begin to decline from a projected 108–109 million barrels.
According to Karapetyan, this shift means that petro-dependent nations will begin undercutting prices, which will also drive down natural gas prices. "What will the leadership of Azerbaijan do during this period—completely dependent on oil and gas, and having failed to establish new industrial enterprises or an inclusive economy in the meantime? That is precisely the moment when Azerbaijan will begin to lag behind us," Karapetyan concluded.
