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
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Taxpayers are unable to complete their quarterly online tax returns in the simplified profit tax format for individuals because the new version of the e-taxes.gov.az portal is not fully functional. Individuals classified as small entrepreneurs by the tax service are required to fill out and submit an online income declaration to the Ministry of Economy's Tax Service portal within twenty days after the end of each quarter. However, the page https://new.e-taxes.gov.az/eportal/az/declarations does not support the simplified profit report for the second quarter of 2024 for this category of citizens. From July 1 to 16, the new beta version of this page has not been working, and the previous version is closed for use.
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The state corporation "Chinese Railways" intends to join the international company "Middle Corridor Multimodal" Ltd., established by the railway companies of Azerbaijan, Georgia and Kazakhstan.This was announced at a meeting with the chairman of the Azerbaijan Railways company Rovshan Rustamov, deputy general director of the "KZhD" Sun Suyuden.
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In a strategic move to enhance state support for agriculture and leasing activities, President Ilham Aliyev of Azerbaijan signed a decree on July 15, 2024, amending the “Procedure for Obtaining and Guaranteeing Debt on Behalf of the Republic of Azerbaijan.” These changes, guided by paragraph 32 of Article 109 of the Constitution of Azerbaijan, align with Decree No. 413 from December 19, 2018, and aim to regulate the use of funds by the Agrarian Credit and Development Agency under the Ministry of Agriculture.
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On July 15, 2024, President Ilham Aliyev of Azerbaijan signed a decree enacting significant amendments to the Tax Code, Customs Code, and the laws on state duty, licenses, and permits. These changes, effective from May 24, 2024, under Law No. 1163-VIQD, aim to strengthen regulatory oversight and streamline procedures for business entities engaged in various economic activities, particularly in the tobacco industry.
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