Decrease in Oil Production and Its Value Correct Azerbaijan's GDP Forecasts

On the night of November 23-24, the five-hour closing ceremony of the 29th session of the UN Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP29) concluded with the adoption of the “Baku Climate Unity Pact”. This pact encompasses three key decisions of the summit:

On Thursday, November 21, a day before the official conclusion of COP29 (although it may be extended until November 24), participants of the UN climate summit, chaired by Azerbaijan, held discussions within the framework of the “Kurultai” initiative about two proposed texts for the "New Collective Quantified Goal" on climate financing (NCQG), according to ASTNA.

On November 7, 2024, a decree by the President of the Republic of Azerbaijan led to the creation of a new transport and communications holding company, AZCON. The President explained this decision as a necessity for a "flexible management system that meets modern requirements to improve the operations of state enterprises in the transport and communications sector, enhance their economic efficiency, and increase contributions to the state budget."

Azerbaijan relies heavily on traditional oil and gas production, exporting these resources primarily westward to markets in Georgia, Turkey, the Balkan states, and European Union member countries via pipeline infrastructure. Despite steady growth in natural gas output, with a significant increase of 19.7 billion cubic meters from 2010 to 2023, fossil fuel export revenues have declined annually due to price volatility and external economic pressures.