S&P Global Ratings Confirms Azerbaijan's Ratings at ‘BB+/B’, Highlighting Energy Sector Revenues Among Key Issues

The European Bank for Reconstruction and Development (EBRD) has published its Transition Report for Azerbaijan for 2024-25, noting progress in macroeconomic indicators and the banking sector while pointing out ongoing risks related to the economy's dependency on hydrocarbons and offering a series of recommendations.

On October 23, Azerbaijan Railways (ADY) presented its first international Sustainability Report, prepared in collaboration with Deloitte, highlighting the company's achievements from 2021 to 2023 and its plans up to 2030.

The negative impacts of Azerbaijan's prolonged border closures, now nearing five years, on the labor market are starkly evident in official statistical figures and data related to self-employment and individual labor activities. A significant portion of the income of residents from border areas was derived from cross-border trade, the sale of goods, transport, public catering, and accommodation services. It is clear from our observations that the closure of the land borders has left those dependent on income from trade and services related to border activities with no choice but to seek alternative jobs and migration to meet their material needs.

Azerbaijan is divided into 14 economic regions, including the capital city of Baku[1], 67 administrative districts, 11 towns subordinate to the republic, six district-subordinate cities, 12 city districts, 262 settlements, 190 town territorial units, 40 sector territorial units, 1,724 village territorial units, and 4,244 villages[2]. In Azerbaijan, neither the districts nor the cities are considered independent subjects of the national economy.