BAKU, Azerbaijan, April 9. Azerbaijan’s GDP growth is expected to stand at 3.4 percent in 2025, before dropping to 3.3 percent in 2026, Trend reports via the latest outlook issued by the Asian Development Bank (ADB).
ADB estimates that the country’s GDP grew by 4.1 percent in 2024 after the 1.1 percent growth recorded in 2023.
“Growth accelerated from 1.1% in 2023 to 4.1% as higher public investment spending boosted expansion in the non-hydrocarbon economy to 6.2%. Growth in services, which provide nearly 42% of GDP, jumped from 1.8% in 2023 to 6.4% in 2024, reflecting strong gains in transportation and tourism. Industry accelerated from marginal contraction in 2023 to 2.1% expansion as mining registered 0.8% growth, and construction 9.6% growth, with crude oil production declining by 3.6% and gas output rising by 6.2%. Growth in agriculture slowed from 3.0% in 2023 to 1.4%, with shrinking but still positive increases of 1.7% for livestock and 1.1% for crops,” reads the report.
ADB analysts note that consumption was the main growth driver on the demand side. Private consumption expanded by 4.8%, reflecting a gain in household income of 6.4%.
“Total investment contracted by 0.7% as investment in the hydrocarbon sector fell by 10.2%, while investment outside the sector expanded by 3.3%. Net exports contracted, reflecting high demand for imports and a decrease in exports,” the report says.