Azerbaijan’s economic growth reaches 1.2%, What are the main drivers of growth?

Growth in the non-oil and gas sector and services supported economic activity, while the decline in construction remained one of the main areas of weakness.

Azerbaijan’s economy continued to grow in January-August 2026. According to the State Statistics Committee, GDP amounted to AZN 87.7 billion during this period, with economic growth reaching 1.2%. While the non-oil and gas sector grew by 2.1%, the oil and gas sector recorded a 0.8% decline.

The main drivers of growth were information and communications, transportation and warehousing, agriculture, and trade. Growth in information and communications stood at 10.7%, transportation and warehousing at 8.7%, agriculture at 2.6%, and trade at 3.9%.

Although overall industrial output declined by 0.4%, the non-oil and gas industry recorded 5.4% growth. In construction, however, value added decreased by 12.5%.

Prices also increased amid economic activity. Consumer prices rose by 5.7% year-on-year in January-August, while food prices increased by 6.9%.

The figures for the first eight months of 2026 show that economic growth has continued mainly on the back of the non-oil and gas sector and services. At the same time, the decline in the oil and gas sector and the contraction in construction remain key constraints on economic activity.