Azerbaijan versus Turkey and Georgia: why Baku’s medical tourism has not yet become a regional brand

Azerbaijan’s tourism sector entered 2026 with cautious optimism but exited the first quarter facing renewed pressure, as early growth gave way to a broader slowdown shaped by geopolitical uncertainty and shifting regional demand patterns.

The decline in trade turnover between Azerbaijan and Turkey in the first quarter of 2026 may at first glance appear to signal weakening economic momentum. However, a closer analysis suggests that this is more a correction driven by price and cyclical factors than a systemic rupture in bilateral ties.

Azerbaijan’s gold market in the first quarter of 2026 showed a mixed dynamic, with production declining sharply, export revenues rising, and domestic demand remaining resilient but increasingly cautious amid record prices, according to official data and industry estimates.

Prime Minister Ali Asadov signed on April 15 a decree “On the allocation of water fund lands for the creation of artificial territories in the part of the Caspian Sea belonging to the Republic of Azerbaijan.”