Azerbaijan's economy grows by 1.5%: Oil and gas sectors contract by 1.2%
Azerbaijan's economic output grew by 1.5% from January through September. It reached 102.05 billion manat, equivalent to 60.03 billion U.S. dollars. The State Statistics Committee reported this on October 9. Excluding oil and gas, the economy grew by 2.6%.
Oil and gas are shrinking, while the rest is growing
The oil and gas sector generated 30.33 billion manat, or 17.84 billion U.S. dollars. This represents a 1.2% decline compared to the same period last year. The rest of the economy totaled 71.72 billion manat, or 42.19 billion U.S. dollars.
The pace has picked up. For January through August, the committee had previously reported 1.2% overall growth, and 2.1% excluding oil and gas. During this period, transportation and warehousing grew by 8.7%, and information and communication by 10.7%. Industry, excluding oil and gas, grew by 5.4%, and agriculture by 2.6%.
The European Bank for Reconstruction and Development (EBRD) described the first seven months as follows: “Production recovered, with growth reaching 1.4% year-over-year in the first seven months of 2026.” The September figure is now slightly higher.
What Minister Jabbarov Offers Businesses
On October 12, Economy Minister Mikayil Jabbarov promoted the private sector at an Azerbaijani-Cambodian economic forum in Baku. He said: “Our economy is developing on the basis of the leading role of the private sector.” The non-oil and non-gas economy has grown by an average of 5% annually since 2020. Its share of economic output stood at 72% in 2025.
Jabbarov cited specific incentives. The government reimburses exporters for up to 70% of their transportation and logistics costs. Companies with an investment promotion document are exempt from taxes and customs duties for seven years. His figures come from the speech; the Statistics Committee has not confirmed them in this report.
For German exporters and investors, opportunities lie outside the energy sector. The economy—excluding oil and gas—is growing, particularly in transportation and information technology. This bodes well for providers of logistics solutions, software, and industrial equipment. Anyone investing locally should review the exemptions mentioned and the logistics reimbursement. Overall growth of 1.5% remains low, however: the oil sector continues to weigh on the balance sheet.
Sources: State Statistics Committee of Azerbaijan via Trend.Az and Report.az (EN), EBRD (EN), Ministry of Economy via APA (EN)
SK, Frankfurt