Court Review: May 14–15, 2026

Azerbaijan’s economic growth nearly stalled in the first four months of 2026 as declining activity in the oil and gas sector continued to weigh on the economy despite moderate growth in non-oil industries and large-scale government infrastructure spending.

Azerbaijan maintained a positive foreign trade balance in the first four months of 2026 thanks to strong oil and gas revenues, although the structure of trade continued to highlight the economy’s heavy dependence on the energy sector alongside rising imports of industrial and consumer goods.

Inflation in Azerbaijan reached 5.6% year-on-year in the first four months of 2026, almost doubling the level recorded a year earlier and increasing pressure on an economic model that has long relied on currency stability and hydrocarbon revenues.

Countries participating in the TRACECA international transport corridor have signed an agreement introducing a single transit permit system aimed at accelerating cargo transportation between Europe, the Caucasus and Central Asia amid growing interest in alternative Eurasian trade routes, project participants said.