Azerbaijan economy seen growing 1.7% in 2026, deputy economy minister says

Azerbaijan’s gross domestic product is expected to grow 1.7% in 2026, while non-oil and gas GDP is forecast to expand 3.1%, Deputy Economy Minister Anar Akhundov said on Friday.

Speaking at a meeting of parliamentary committees, Akhundov said GDP grew 1.5% in January-September, while the non-oil and gas sector expanded 2.6%. The sector accounted for more than 70% of GDP.

Over the first nine months, value added in non-oil and gas manufacturing rose 6.6%, transport and warehousing grew 10%, and information and communications increased 11.1%, he said. Household consumption rose 4.6% in real terms.

Private investment in the non-oil and gas sector increased 20.7%, Akhundov said. Exports of processed agricultural products rose 37%, while non-oil and gas industrial exports increased 21.5%. Strategic foreign exchange reserves were up 5.1% from the start of the year at $89.4 billion.

Average annual growth in the non-oil and gas sector during the 2022-2026 socioeconomic development strategy period is expected to reach 5.2%, exceeding its target, Akhundov said, without specifying the target. A new strategy for 2027-2030 is being prepared.

Industrial zones have generated sales of 22.6 billion manats ($13.3 billion), including 7.1 billion manats in exports, he said. Businesses have invested nearly 7.3 billion manats in the zones, which have created 11,800 permanent jobs. Another 29 companies became residents of industrial zones in the first nine months of this year.

A 2027-2030 state programme for mining and metallurgy will aim to process domestic resources in Azerbaijan and boost exports of higher value-added products, Akhundov said. Other priorities include logistics, tourism and digital services, including data centres.