Fitch Ratings on Azerbaijan: large foreign exchange reserves, but the situation in the economy and geopolitics is poorly predictable

The immediate trigger for the contraction was a 1.2% decline in the oil and gas sector, which continues to dominate Azerbaijan’s economic architecture. This drop came despite a rebound in global oil prices in March, highlighting a critical vulnerability: production dynamics, rather than price fluctuations, are increasingly shaping output.

The Regional Office of the Food and Agriculture Organization of the United Nations (FAO) for Europe and Central Asia has published technical notes titled “Future Development Pathways for Aquaculture and Fisheries in Azerbaijan” as part of a series of publications on natural resource management, biodiversity, and climate change.

Azerbaijan’s service economy is having a moment. In January-February 2026 the value of paid services sold to households rose by 8.9% in real terms, to 2.53bn manats.

The escalation of military tensions around Iran has driven a sharp rise in global oil prices, potentially bringing significant benefits to Azerbaijan’s energy-dependent economy while at the same time highlighting the country’s continuing reliance on hydrocarbon revenues.