Weekly Economic Review for March 23–29, 2026

Chronology of Economic Events March 16 President of Azerbaijan Ilham Aliyev signed a decree on the implementation of a law amending the Customs Code, the Code of Administrative Offenses, and the law “On Precious Metals and Precious Stones.” The document introduces a mandatory authorization regime for the import and export of rough diamonds, strengthens state oversight, and aligns national regulations with the Kimberley Process requirements. On the same day, the president signed a decree implementing amendments to the law “On Cinematography.” The reform aims to modernize the sector by introducing financial incentives for foreign producers, promoting co-production mechanisms, and establishing a clearer regulatory framework to attract international film projects. At the same time, the Interdepartmental Coordination Headquarters under the Presidential Administration held a meeting in Khojavend, focusing on the implementation of the “Great Return” program. Discussions covered infrastructure development, employment, and agricultural policies in the liberated territories. March 17 • The Milli Majlis (Parliament) adopted amendments to the law “On Subsoil,” aimed at expanding the economic use of natural resources. The changes include the incorporation of sedimentary materials and excavation by-products into formal economic circulation, the introduction of mandatory environmental reclamation requirements, and improved mechanisms for investor engagement. • On the same day, the Cabinet of Ministers, chaired by Prime Minister Ali Asadov, adopted a series of resolutions to align secondary legislation with previously adopted laws. Amendments to the implementation rules of the law “On the Budget System” were approved, introducing clearer classifications of revenues and expenditures, strengthening fiscal control, and enhancing centralized financial management mechanisms. • Additionally, the government approved changes to regulations governing property rights and civil procedures, including land use, notarial services, and enforcement of court decisions, with the aim of improving legal certainty and reducing administrative barriers. • A separate resolution updated the rules for municipal waste management, expanding sanitary requirements to include tourism and recreational areas and improving systems for waste collection, transportation, and disposal. • On the same day, the Central Bank released balance of payments data for 2025, reporting a current account surplus of $3.5 billion (4.6% of GDP), alongside an overall balance of payments deficit of $1.4 billion. March 18 • State authorities introduced the national standard AZS ISO 20121 on sustainable event management. The document integrates environmental, social, and governance (ESG) principles and aims to strengthen Azerbaijan’s position as a host of international events. • On the same day, the Central Bank published data on trade in services, showing total turnover of $18.9 billion. The transport sector generated a substantial surplus, while tourism maintained a positive balance, confirming the growing importance of non-oil services in the economy. March 19 • President Ilham Aliyev signed a decree implementing amendments to the Criminal Code and the Criminal Procedure Code. The reform introduces electronic evidence, digital investigation procedures, and elements of e-justice, effectively laying the groundwork for a transition toward a digital justice system. • On the same day, the Cabinet of Ministers approved new “Rules for maintaining and using a registry of inspections and technical maintenance in the gas sector.” The regulation establishes a unified digital registry aimed at improving infrastructure monitoring and enhancing safety control. • In addition, the president signed a decree reforming the mandatory health insurance system. The reform introduces a centralized management model and creates a unified state body responsible for financing and allocating healthcare resources under a “single payer” system. • A package of presidential decrees was also signed to reform the wage system in the public sector. The measures introduce a unified pay scale, reduce reliance on bonuses and allowances, and aim to increase transparency in public wage expenditures. March 20 • Amendments to criminal legislation entered into force, initiating the practical implementation of digital procedures in the judicial system. The transition toward electronic evidence and automated processes is expected to improve efficiency and reduce administrative costs. March 21–22 • No new economic regulatory acts were adopted due to the Novruz holiday period. Economic activity shifted toward consumption, retail trade, and services, contributing to a short-term increase in domestic demand. Weekly Summary The economic agenda of Azerbaijan during March 16–22, 2026 reflects a transition toward a more institutionalized and technologically driven model of economic governance. One of the central trends of the week was the acceleration of digital transformation. Legislative reforms in the judicial system, the introduction of digital registries in the energy sector, and continued improvements in digital infrastructure indicate the emergence of a governance model increasingly based on data and electronic systems. These changes are expected to enhance transparency, reduce transaction costs, and strengthen regulatory oversight. At the same time, there is a clear trend toward centralization of management and financial flows. The reform of the mandatory health insurance system and the restructuring of public sector wages signal a shift toward a more consolidated model of resource allocation. While this approach may improve fiscal discipline and administrative efficiency, it also raises concerns about the concentration of authority and potential institutional rigidity. Another important development is the expansion of the formal economy. Amendments to the law “On Subsoil,” new regulations for the diamond trade, and strengthened oversight in the gas sector are aimed at bringing previously unregulated or partially regulated activities into the formal economic framework. This is expected to increase transparency, broaden the tax base, and improve resource management. External sector data present a mixed picture. While the current account surplus remains strong, the widening balance of payments deficit reflects shifts in capital flows and external financial dynamics. At the same time, the continued expansion of the services sector—particularly transport and tourism—highlights the gradual diversification of the economy and Azerbaijan’s growing role as a regional logistics and service hub. Overall, the week demonstrates that Azerbaijan’s economic policy is evolving along several parallel tracks: digitalization of governance, institutional modernization, increased state coordination, and diversification away from hydrocarbons.

The week of March 9–15, 2026, in Azerbaijan’s economic agenda was marked by stabilization following the regional tensions of early March, increased economic diplomacy, and discussions on new sources of economic growth. Key attention was focused on restoring trade links, macroeconomic trends, and strategic directions for development.

Azerbaijan’s economic agenda from March 2 to 8 focused on three main directions: energy diplomacy and the deepening of cooperation with Europe, the expansion of state support for agriculture and financing mechanisms, and the adoption of a new regulatory policy in water resource management. A security incident in the middle of the week also intensified discussions about risks to economic and energy infrastructure.