Growing Gap between Natural and Legal Persons in Business
An official report on the development of local business in the past year has been published, prepared by the Ministry of Economy and Industry.
Last year, the number of businesses in Azerbaijan reached 614 423. Most of them are individuals engaged in business (84.6%), and the rest are legal persons, mostly LLC. The difference also increased - the number of legal entities increased by 9%, while the number of individuals increased by 12.5%.
The main part of the gross domestic product (81.9%) was developed in the private sector, while its share declined slightly - from 85% in 2013.
In industrial production (79.5%) and employment (73.4%) the private sector also leads. This is achieved due to the fact that the major government contractors create many private businesses and order the work to them. --17D-
Economics
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Azerbaijan's financial standing continues to strengthen as the country's foreign currency reserves have surged to $71 billion as of January 1, 2025, according to the Ministry of Finance. This figure, which includes reserves held by the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA), far exceeds the nation's external debt, which stands at a fraction of its reserves, specifically nearly 14 times less. This robust reserve position reflects Azerbaijan's fiscal stability and the government’s strategic economic management.
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According to operational data from the Ministry of Energy of Azerbaijan, in January 2025, the country produced 2.3 million tons of oil, including condensate, and 3.9 billion cubic meters of gas.
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The State Oil Company of Azerbaijan (SOCAR) has opened a representative office in Albania and is set to launch a specific project this year, the Albanian company "Albgaz" announced.
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"Azerbaijan is currently among 54 middle-income countries," said Shahmar Movsumov, head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, during the presentation of the World Bank’s World Development Report 2024 in Baku on February 10.
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