Capital within the system: how Azerbaijan sustains investment without external impulse

In the first quarter of 2026, Azerbaijan’s “Kebab Index” increased by approximately 6–7% (baseline scenario), closely tracking food inflation and making it a useful “household indicator” of rising prices.

On April 20, 2026, the Milli Majlis adopted the “Report on the Activities of the Chamber of Accounts for 2025,” presented by Chairman Vugar Gulmammadov.

Monetary conditions in Azerbaijan remained broadly stable in the first quarter of 2026, with moderate inflation and resilient banking sector indicators. However, rapid growth in consumer lending is increasing the risk of economic overheating, according to data from the regulator and analysts’ assessments.

Azerbaijan’s public finances in 2025 and early 2026 have shown resilience, supported by strong oil and gas revenues and transfers from the State Oil Fund of Azerbaijan, but continue to exhibit structural dependence on the commodity sector, according to official data and analyst estimates.