The President of Azerbaijan Outlined Plans to Maintain Economic Stability

On Thursday, President Ilham Aliyev spoke at a high-level meeting dedicated to Azerbaijan's economic indicators and future strategies, emphasizing significant growth in the non-oil sector and outlining plans to maintain economic stability by the end of the year.

In his speech, President Aliyev highlighted that Azerbaijan's economy has grown by 4.3 percent since the beginning of the year, which, according to him, surpasses the performance of many developed countries despite global geopolitical tensions. “The economy has grown by 4.3 percent,” Aliyev stated, adding that this growth rate exceeds expectations and underscores the effectiveness of the country's diversification efforts.

The main highlight of the president's address was the 7 percent expansion of the non-oil sector, demonstrating Azerbaijan's ongoing efforts to reduce dependence on oil revenues. “The steps taken towards diversifying the country’s economy and the thoughtful reform policies are bearing fruit,” he noted. This diversification is crucial as oil production has declined in recent years, and Aliyev acknowledged this issue but assured that it has been mitigated by growth in other sectors.

Economic stability is also reflected in the country's low inflation rate, which has remained just above 1 percent since the beginning of the year. Despite significant expenditures in areas such as military development, infrastructure, and social programs, the government plans to increase the minimum wage and pensions next year. “Inflation since the beginning of the year has been just over 1 percent. This is a very positive indicator,” Aliyev remarked.

Azerbaijan is also actively promoting foreign investments, especially in non-oil sectors. The president emphasized that the country ranks among the leading nations in terms of investment per capita, supported by recent geopolitical events and the restoration of territorial integrity following the anti-terrorist operation. New enterprises are emerging in traditional industrial centers like Baku and Sumgait, as well as in newly established industrial parks in liberated regions such as Agdam and Jabrayil.

Aliyev outlined the main priorities for the upcoming year, including strengthening military capabilities, restoring regions affected by the conflict, and improving social infrastructure. He expressed confidence in Azerbaijan's economic model, which he described as “strong and independent,” capable of maintaining an autonomous foreign policy.

According to official statistics, Azerbaijan's macroeconomic indicators for the first eight months of 2024 show moderate growth and stability in certain sectors of the economy.

The country's Gross Domestic Product (GDP) from January to August 2024 increased by 4.3%, reaching 80.96 billion manat (approximately $47.5 billion) compared to the same period in 2023.

The inflation rate in the country was 1.3%, indicating moderate price growth. The Consumer Price Index reached 101.3% compared to the same period last year.

The fruit and vegetable export sector faced difficulties, reflected in a 6.1% decrease in physical volume and a 3.3% decline in value compared to the previous year. This indicates a challenging situation in the agricultural sector.

Thus, Azerbaijan's macroeconomic indicators for the first eight months of 2024 show positive trends in overall economic growth but also reveal issues in certain sectors, such as agriculture.