In this study, we analyse multiple dimensions in which a resolution of the Nagorno-Karabakh conflict is likely to lead to economic “benefits of peace” to Armenia and Azerbaijan: public finances, trade in goods and services, the energy and water sectors as well as financial markets and investments. In our scenario, we assume a full resolution of the Nagorno-Karabakh conflict leading to a complete normalisation of relations between Armenia, Azerbaijan and Turkey with open borders, trade and the potential for cooperation.
The main economic benefits of peace for Armenia and Azerbaijan would lie in the three dimensions:
1. Public finances
2. The energy and water sectors
3. Financial markets and investments.