Azerbaijan’s annual inflation stands at 4.9% in 2024

Amid rising global economic and geopolitical uncertainty, Azerbaijan’s economy and financial system maintained their stability, Central Bank Chief Director Shahin Mahmudzade said during the presentation of the annual financial stability report.

He noted that worldwide political tensions, shifts in trade policies, and falling energy prices have contributed to a slowdown in financial flows.

“In many countries, fiscal reserves remain insufficient, posing risks to macroeconomic stability,” Mahmudzade stated.

Despite external challenges, Azerbaijan recorded economic growth, and annual inflation stood at 4.9%, remaining within the Central Bank’s target range.

Growth in employment and household income helped support financial stability.

The size of the financial sector grew by 7.9% in 2024, reaching 56.2 billion manats. Of this, 3.58 billion manats came from the banking sector, 220 million manats from insurance, and 330 million manats from non-bank credit institutions.

The banking sector remained dominant, accounting for 94.1% of total financial assets.

Foreign assets also rose from 21.8 billion manats in 2023 to 25.9 billion in 2024, largely due to increased term deposit volumes.

“We observed a positive trend in household deposit behavior. In particular, growth in deposits ranging from 150,000 to 500,000 manats reflects rising public confidence in the sector,” Mahmudzade added.

N.Tebrizli