Oil dependence resurfaces as a binding constraint

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.

When Azerbaijan’s Economic Council convened on February 27 under the chairmanship of Prime Minister Ali Asadov, the agenda went beyond a routine macroeconomic review. At the center of discussions was the draft “Socio-Economic Development Strategy of the Republic of Azerbaijan for 2027–2030,” currently under active preparation and consultation.