The pace of GDP decline in Azerbaijan is slowing down
In the first half of 2024, Azerbaijan produced a gross domestic product amounting to 59,520.4 million manats, which is 4.3% higher than the same period last year, according to the State Statistics Committee (SSC).
Value added in the oil and gas sector increased by 0.6%, while the non-oil and gas sector saw significant growth of 6.9%, as reported by the SSC. GDP production was diversified across various sectors: industry accounted for 38.5%, trade and repair of motor vehicles for 9.7%, transportation and storage for 7.0%, construction for 5.8%, agriculture, forestry, and fishing for 5.8%, accommodation and food services for 2.4%, and information and communication for 1.7%. Other sectors, along with net taxes on products and imports of industrial goods, contributed 19.5% and 9.6% to GDP respectively.
According to Turan's calculations, GDP actually contracted by 1.3% during the reporting period, as GDP for the first six months of 2023 amounted to 60,302 million manats. However, the six-month figures for 2024 indicate a slowdown in the GDP production decline. In previous months, the decline was at a level of 4.5%.
GDP per capita for the first half of 2024 amounted to 5,840.7 manats.
Economics
-
Azerbaijan’s Central Bank has outlined its commitment to maintaining inflation within its target range, as it projects stable inflation expectations for the coming years. According to a recent statement from the Central Bank regarding the parameters of its interest rate corridor, the current monetary policy is focused on keeping inflation within the target range and stabilizing inflation expectations.
-
Azerbaijan’s central bank has reported a stable currency market as its foreign exchange reserves reached $11 billion by the end of 2024, according to Taleh Kazımov, Chairman of the Central Bank of Azerbaijan (CBA). Speaking at a briefing on the parameters of the central bank’s interest rate corridor on Wednesday, Kazımov also indicated that the country's favorable external sector indicators have provided a solid foundation for currency stability.
-
Russia and Iran have agreed on a gas pipeline route passing through Azerbaijan, according to Russia’s Energy Minister Sergey Tsivilyov. The Russian minister stated that the parties are in the final stage of negotiations, and the volumes have already been determined. According to Tsivilyov, Iran’s agreement with Russia’s Gazprom for gas supply via Azerbaijan is currently estimated at over 2 billion cubic meters annually. However, future supplies could increase to 55 billion cubic meters per year.
-
On January 20 during the World Economic Forum's Annual Meeting in Davos, President Ilham Aliyev of Azerbaijan engaged in a strategic dialogue with Nick Studer, CEO of Oliver Wyman Group.
Leave a review