Azerbaijan's Economy Grows 1.5% In Januaryseptember 2026

(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 9. Azerbaijan's gross domestic product (GDP) totaled $60.03 billion in January–September 2026, increasing by 1.5% compared with the same period last year.

According to the State Statistical Committee of Azerbaijan, the country's oil and gas GDP declined by 1.2% year-on-year to $17.84 billion, while non-oil and gas GDP increased by 2.6% to $42.19 billion.

Meanwhile, the European Bank for Reconstruction and Development (EBRD) has maintained its GDP growth forecasts for Azerbaijan at 2% for 2026 and 2.5% for 2027, according to the bank's Regional Economic Prospects report.

The forecasts remain unchanged from the bank's previous estimates.

The report notes that Azerbaijan's economy grew by 4.2% in 2024, before growth slowed to 1.4% in 2025. GDP increased by 0.8% in the first half of 2026.

“Following a contraction in the first quarter of 2026, output recovered, with growth reaching 1.4% year-on-year in the first seven months of 2026. During this period, the oil and gas sector contracted by 0.6%, while non-oil GDP grew by 2.2% year-on-year, supported by strong performance in information and communication, transportation and storage, and industry,” the EBRD said.

According to the bank, investment in fixed assets increased by 10.7% year-on-year, mainly driven by investment in the oil and gas sector. Average inflation stood at 5.7%, close to the upper bound of the Central Bank of Azerbaijan's target range.

The EBRD also noted that, following a 25-basis-point cut in February, the Central Bank of Azerbaijan kept its key interest rate unchanged at 6.5%.

“Azerbaijan's state budget recorded a surplus equivalent to around 4.5% of GDP in the first seven months of 2026. The current account surplus reached 5.3% of GDP on a rolling four-quarter basis in the first quarter of 2026. The country's strategic foreign exchange reserves reached 114% of 2025 GDP in early August 2026, increasing by 12.2% year-on-year,” the report said.

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