Finance
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Azerbaijan’s banking sector has expanded steadily over the past two decades, but structural imbalances in lending continue to constrain its role in driving broader economic development, according to recent data and analyst assessments.
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At the start of 2026, Azerbaijan’s investment landscape appears both resilient and constrained. Capital flows have not disappeared — they have been redistributed. Where growth in previous years was largely driven by external inflows, it is now increasingly defined by an internal equilibrium supported by the state and hydrocarbon revenues.
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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.
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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.
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