The results of the development of the Azerbaijani economy in the first quarter: growth in key sectors, state budget surplus

Amidst a backdrop of geopolitical tensions, monetary policy shifts, and global economic uncertainty, the International Monetary Fund (IMF) has revised its global growth forecast, underscoring both challenges and opportunities on the horizon. As the world grapples with a complex web of factors shaping economic prospects, Azerbaijan finds itself navigating a path marked by cautious optimism and strategic planning.

Investors are betting that the Azerbaijani economy will cope with the conflict in Nagorno-Karabakh better than the Armenian economy. This is how analysts of large investment houses write about it. In her arguments for Forbes, Evgenia Sluchak, founder and director of EPFC Asset Management, does not quite agree with such conclusions. The situation seems more contradictory than it seems at first glance.

In 2023, Azerbaijan experienced a significant shift in its economic landscape, particularly in its balance of payments, highlighting the country's vulnerability to global oil and gas market fluctuations. The Central Bank of Azerbaijan (CBA) reported a current account surplus of $8.3 billion, or 11.5% of the country's Gross Domestic Product (GDP), a stark decrease from the previous year's record high. Below we will look at the underlying factors, the impact on Azerbaijan's foreign trade and the broader economic consequences.

In the economic landscape of Azerbaijan during January and February 2024, several significant trends emerged, portraying both progress and challenges.