Azerbaijan Economy Grows 1.2% in January-August

Azerbaijan’s economy grew 1.2% year-on-year in January-August 2026, slowing from a 1.4% expansion in the first seven months of the year. The oil and gas sector contracted further (-0.8% vs -0.6% in the January-July period), while growth in the non-oil and gas sector eased slightly (2.1% vs 2.2%). Industrial output fell 0.4%, reversing a 0.3% rise. Growth also moderated in agricultural output (2.6% vs 2.8%). Meanwhile, transportation and warehousing services (8.7% vs 7.1%), information and communication services (10.7% vs 10.4%), and retail trade turnover (3.9% vs 3.8%) continued to increase. Investment in fixed capital rose 10%, compared with 10.7% previously, amid weaker growth in the non-oil and gas sector (1.4% vs 1.9%).

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.