Analysis of Azerbaijan’s GDP growth in 2024

Azerbaijan’s economy has demonstrated remarkable resilience and growth in the first five months of 2024, with a notable increase in gross domestic product (GDP). From January to May, GDP increased by 4.2%, reaching an impressive 48,026.0 million manats. Azernews examines the factors contributing to economic recovery, with a particular focus on significant growth in the non-oil and gas sector.

One of the key factors in Azerbaijan’s GDP growth is the good performance of the non-oil and gas sector. According to the reports of the Statistical Commission, there was a significant increase in value added production in this sector, which increased by 7.3% compared to the previous year. This growth indicates the diversification of Azerbaijan’s economy away from its traditional dependence on oil and gas revenues.

While the non-oil and gas sector experienced significant growth, the oil and gas sector remained relatively stable. Despite fluctuations in global oil prices and geopolitical tensions, Azerbaijan’s oil and gas industry has maintained its contribution to overall GDP, providing a solid foundation for economic stability.

A breakdown of the composition of Azerbaijan’s GDP provides insight into the sectors driving economic growth. The industrial sector was in first place, generating 39.7% of GDP, followed by trade and vehicle repair (9.6%), transport and warehousing (7.0%), construction (6.0%), agriculture, forestry and fishing (3.8%), tourist base and gastronomy (2.4%) and information and communication (1.8%). The remaining 20.1% of GDP came from various other sectors. Additionally, net taxes on products and imports played an important role, generating 9.6% of GDP.

A noteworthy aspect of Azerbaijan’s economic growth is its positive impact on per capita income. With a GDP per capita of 4,713.3 manats, this economic recovery has the potential to improve living standards and increase the purchasing power of the population.

Several factors may have contributed to Azerbaijan’s strong economic growth. These include government initiatives to diversify the economy, attract foreign investment and promote entrepreneurship. Additionally, ongoing infrastructure projects and efforts to improve the business environment may have boosted economic activity across sectors.

Azerbaijan’s impressive GDP growth in the first five months of 2024 highlights the country’s economic resilience and potential for further development. Significant expansion in the non-oil and gas sector, combined with stability in the oil and gas industry, reflects a positive trajectory towards economic diversification and sustainable development. Going forward, further efforts to support a favorable business environment and investment in key sectors will be necessary to maintain this momentum and ensure long-term prosperity.

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