Azerbaijan’s budget revenues exceed forecast in the first quarter of 2026

The reconstruction and redevelopment processes carried out in Azerbaijan’s liberated territories represent one of the largest-scale state investment programs in the country. The audits conducted in 2025 were primarily post-audits (ex-post reviews), and since project implementation is still ongoing, they present interim assessments rather than final conclusions.

Armenian Prime Minister Nikol Pashinyan and Azerbaijani President Ilham Aliyev have been awarded the 2026 Gernika Prize for Peace and Reconciliation, a symbolic recognition of their efforts to advance negotiations between two countries that have remained in conflict for decades.

Azerbaijan’s institutional and governance indicators in the first quarter of 2026 point to gradual improvements in public administration, digitalisation and service delivery, although disparities in implementation and lingering structural risks continue to weigh on overall effectiveness.

Environmental, social and governance (ESG) reporting in Azerbaijan is becoming increasingly institutionalised, with first-quarter data pointing to a gradual shift from voluntary disclosure to a de facto requirement, driven by investor expectations and the legacy of global climate negotiations such as COP29.