Azerbaijan GDP Stalls in January–May

Azerbaijan’s economy expanded 1.4% year-on-year in January-July 2026, accelerating from 0.8% growth in the first six months of the year. The non-oil and gas sector continued to drive the expansion, growing 2.2% compared with 1.5% in January-June, while the oil and gas sector contracted again, declining 0.6% after a 0.7% drop in the first half of the year. Industrial output increased 0.3%, driven by a 4.4% rise in the non-oil and gas industry. Retail sales grew 3.8%, while transportation and warehousing increased 7.1%, agriculture rose 2.8%, and information and communication surged 10.4%. Meanwhile, investment in fixed capital increased 10.7%, with the oil and gas sector accounting for the bulk of the growth.

Azerbaijan’s gross domestic product grew 0.8% in January–June 2026, picking up from a flat reading in the first five months of the year but slowing from a 1.5% expansion in the same period last year. This marked the strongest growth since January, with value added in the non-oil and gas sector accelerating to 1.5% from 0.4% in the first five months, while value added in the oil and gas sector contracted by 0.7%, easing from a 1.0% decline. On the production side, industry remained the largest contributor to GDP, accounting for 34.6%, followed by trade and vehicle repair (10.6%) and transport and warehousing (7.3%). Agriculture, forestry, and fishing accounted for 5.9% of the economy, construction for 4.9%, tourist accommodation and catering for 2.9%, and information and communication for 2.0%, while other sectors made up 22.8% of the economy. Net taxes on products and imports accounted for 9.6% of GDP.

Azerbaijan’s gross domestic product recorded a flat reading in January–May 2026, following 1.5% growth in the same period last year. The stagnant performance was mainly driven by the oil and gas sector, which contracted 1.0%, worsening from a 0.9% decline last month, while growth in the non-oil and gas sector slowed to 0.4% from 0.7%. On the production side, industry remained the largest contributor to GDP, accounting for 36.3%, followed by trade and vehicle repair (10.5%), transport and warehousing (7.4%). Construction accounted for 4.6% of the economy, agriculture, forestry, and fishing for 4.2%, tourist accommodation and catering for 2.9%, and information and communication for 2%, while other sectors made up 22.8% of the economy. Net taxes on products and imports accounted for 9.3% of the GDP.