Outlook for Q2 hinges on fragile recovery in domestic demand

On April 23, a regular meeting of the Commission on the Efficient Use of Water Resources was held under the chairmanship of Azerbaijan’s Deputy Prime Minister Shahin Mustafayev. During the meeting, the participants discussed the operational adjustment of the functioning regimes of the country’s main water basins and reservoirs under conditions of a period of increased water availability.

Azerbaijan’s transport and logistics sector posted moderate growth in the first quarter of 2026, reflecting the country’s rising role as a transit hub between Asia and Europe amid the ongoing reconfiguration of Eurasian trade routes, according to preliminary government data and analyst estimates.

Azerbaijan’s social dynamics in the first quarter of 2026 showed formal stability across key indicators, but their underlying structure points to persistent imbalances in incomes, employment and access to basic services. Current data suggest that assessing social resilience requires not only looking at headline levels, but also at trends and regional disparities.

Azerbaijan entered 2026 with a familiar but increasingly nuanced trade profile: a strong surplus underpinned by hydrocarbons, set against declining turnover and a gradual reconfiguration of trading partners. Data for the first quarter suggest that while the country remains resilient to external shocks, underlying structural adjustments are accelerating.