Inflation in Azerbaijan: Inflationary Pressure Significantly Eased

In its latest monthly oil market report, OPEC has revised its global oil demand growth projections downward for the fifth consecutive time, reflecting a cautious outlook on energy markets as economic and geopolitical challenges persist. The group reduced its 2025 demand growth estimate by 90,000 barrels per day (b/d) to 1.45 million b/d, citing weaker expectations for the Middle East.

Azerbaijan's Prime Minister Ali Asadov arrived in Moscow on December 11, 2024, for a working visit aligned with the meeting of the Commonwealth of Independent States (CIS) Council of Heads of Government, held on December 12–13 under the chairmanship of the Russian Federation.

In a significant shift for its pension system, Azerbaijan is preparing to introduce private pension funds by 2026, offering citizens an alternative to the state-run system that has long been the cornerstone of retirement security. The Ministry of Labor and Social Protection has unveiled plans for over 20 regulatory acts to underpin the launch, which is seen as a pivotal move in the country’s financial system.

Azerbaijan's economy demonstrated robust growth from January to November 2024, with gross domestic product (GDP) rising by 4.7% compared to the same period last year, according to government data. By September, GDP had reached 92.83 billion manats (approximately $54.7 billion USD), reflecting significant progress in diversifying beyond oil and gas, a longstanding focus of economic policy.