Azerbaijan: Azerbaijan's economy grew by 1.5%

In the period from January to May 2025, steady growth was observed in the Azerbaijani economy. According to data provided by the State Statistics Committee and reported by FED.az, the country produced 50.0995 billion manats worth of Gross Domestic Product (GDP) during this period. This represents a 1.5% increase compared to the same period in 2024, indicating that the economy has maintained a stable path of development in the post-pandemic phase.

This growth is mainly attributed to increased activity in the non-oil sector. While value-added in the oil and gas sector decreased by 3.0%, the non-oil and gas sector grew by 3.9%. These figures reflect the positive impact of the government’s economic diversification policy over recent years.

Retail Trade Turnover Shows Positive Momentum

Rising consumer purchasing power and a balanced supply-demand environment have contributed to a strong retail trade performance. In the first five months of 2025, retail trade turnover surpassed 23 billion manats. This growth stems from both stronger domestic production and sustained demand for imported goods. The retail sector continues to serve as one of the key pillars of the non-oil economy.

Sectoral Composition of GDP

During the reporting period, the largest share of GDP came from the industrial sector, accounting for 36.2%. This reflects the continued significance of manufacturing and production in Azerbaijan’s economic structure.

The breakdown of GDP by other sectors is as follows:

• Trade and repair of motor vehicles – 9.9%

• Transportation and storage – 7.0%

• Construction – 6.2%

• Agriculture, forestry, and fishing – 4.0%

• Tourism and food services – 2.8%

• Information and communication – 1.8%

• Other sectors – 21.7%

• Net taxes on products and imports – 10.4%

This diversified structure demonstrates balanced development across different branches of the economy and reinforces the sustainability of Azerbaijan’s growth model.

GDP Per Capita Reflects Improved Welfare

GDP per capita during this period was 4,896.1 manats, indicating a rise in average income levels and showing that economic growth is positively impacting the population’s welfare. The increasing per capita GDP suggests a gradual improvement in living standards and the wider distribution of economic benefits.

Conclusion

The statistical data for the first five months of 2025 show that Azerbaijan is progressing in a stable and planned manner. The reduction of oil dependency and the development of non-oil sectors continue to be key drivers of economic resilience. If this trend continues, even stronger economic results are expected by the end of the year.

Reference/Citation

Azerbaijan's economy grew by 1.5% (2025, July 8). | Fed.az. -

https://fed.az/az/iqtisadiyyat/azerbaycan-iqtisadiyyati-15-boyuyub-233454

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