In 2024, one of the most notable developments in the Azerbaijani economy that demands detailed analysis is the transformation of foreign trade statistics. This article provides an in-depth examination of Azerbaijan's foreign trade landscape in 2024, focusing on its dynamics, structure, and...

In this paper, an analysis of Azerbaijan's economic and social performance in 2024 is presented, highlighting key trends and challenges. The discussion covers macroeconomic indicators, sectoral contributions, investment dynamics, regional disparities, and issues related to transparency and data...

The financial sustainability of the State Oil Fund of Azerbaijan (SOFAZ) is entering a critical phase, shaped by both domestic and international economic shifts. With Donald Trump’s return to power in the United States, significant changes in domestic and foreign policy are reshaping global...

The three South Caucasus economies - Armenia, Azerbaijan and Georgia - have performed relatively well since the COVID-19 pandemic, benefiting from certain spillovers of Russia's war against Ukraine. The oil importers Armenia and Georgia achieved double-digit GDP growth in 2022 - 12.6% and 11.0%,...

This Country Partnership Framework (CPF) presents the planned engagement of the World Bank Group (WBG) in Azerbaijan over the next five years (FY25-29). The CPF is guided by the government's strategy for socio-economic development for 2022-26 (SEDS) and the WBG's most recent strategic analysis -...

This report identifies the unique technological challenges and opportunities faced by various Azerbaijani communities when using digital tools and services, particularly in rural areas. The findings will support the Government of Azerbaijan in its design of the interventions necessary to create...

The three South Caucasus economies - Armenia, Azerbaijan and Georgia - have performed relatively well since the COVID-19 pandemic, benefiting from certain spillovers of Russia's war against Ukraine. The oil importers Armenia and Georgia achieved double-digit GDP growth in 2022 - 12.6% and 11.0%,...

The empirical findings of this study suggest a significant long-term relationship between the probability of mortality due to non-communicable diseases (NCDs) among individuals aged 30-70 in Azerbaijan and key economic and social indicators, including Gross Domestic Product per Capita, Waged...

A technical assistance mission assisted the State Statistical Committee of Azerbaijan (SSC) in developing the system of quarterly national accounts. It did so by reviewing the compilation of quarterly GDP by production and providing recommendations for further improvement. The mission also...

This paper focuses on the Republic of Azerbaijan's Financial Sector Assessment Program as part of Financial System Stability Assessment. Azerbaijan's economy has recovered from two downturns prompted by the collapse of global oil prices in 2015 and coronavirus disease 2019 pandemic in 2020. An...

The 2025 Article IV Consultation discusses that following a slowdown in 2023, growth accelerated, and inflation picked up in Azerbaijan. The decline in oil and gas prices reduced the 2024 external surplus, but fiscal consolidation resumed. Looking ahead, growth is projected to moderate and...

The balance between supply and demand influences inflation and understanding whether one factor predominates the other has significant implications for economic policy. Distinguishing the contributions of supply and demand factors to inflation offers insight into the primary drivers of inflation...

This report presents an analysis of the Central Bank of the Republic of Azerbaijan's (CBA) communication framework and offers recommendations for enhancement. The technical assistance mission, led by the IMF Monetary and Capital Markets Department, aimed to modernize the CBA's communication...

The report offers a concise overview of the higher education system in Azerbaijan,addressing key areas to provide a comprehensive understanding of the system'scharacteristics. These include institutions of higher education, student population,governance of higher education, and the funding of...

This study examines the evolution of Azerbaijan’s tourism sector in the aftermath of the COVID-19 pandemic, focusing on the economic and policy consequences of prolonged land-border closures. Drawing on official statistics, international datasets, and comparative analysis with Georgia and...

The study provides an overview of levels of institutional and fiscal decentralisation, and of the legal bases for the various governance structures in Armenia and Azerbaijan. The distribution of competencies at each level of governance is presented in the following policy areas of mandatory...

Azerbaijan's economy is at a critical juncture, with the decreasing reliance on resource-based income signaling an imminent transition. The nation's strategic focus on economic diversification offers substantial prospects for growth in non-oil sectors. However, the pressing question remains: Is...

This article examines Azerbaijan's economic performance in 2024 and provides projections for 2025, highlighting key challenges and potential opportunities. Despite expectations for reform, 2024 was marked by persistent inflation, currency pressures, and declining investments, underscoring the...

The pervasive reach of corruption extends far beyond individuals, impacting entire populations and critical infrastructure. This paper examines a tragic event that occurred on October 22, 2024 in Baku's Sabunchu district, where two drivers lost their lives, not to floodwaters, but to the...

This article provides a comparative analysis of the main parameters of the 2025 state budget with those of neighboring countries. It examines the structural and trend analysis of budget revenue sources and expenditures while also evaluating the expectations of consumers, businesses, and state...

A 30-year period is sufficient to evaluate the place of the “Contract of the Century” in modern Azerbaijani history and its role in shaping the national economy. Although such evaluations are conducted periodically, we will attempt to conclude the assessment on the occasion of COP29, which...

On 1 January 2025, the Transit Agreement, which has provided political, commercial, technical and legal grounds for the transit of Russian gas across Ukraine during 2020-24, will expire. Once it happens - and if no extension or alternative transit arrangement are agreed - the transit will stop....

This article examines the challenges Azerbaijan faced on the Eve of COP29. Assessing the situation in Azerbaijan regarding energy, ecology, and climate finance issues, the author systematizes the critical problems to be solved in this field and draws attention to Azerbaijan's policy on the Eve...

This paper is a deep dive into the reasons behind Russian President Putin's state visit to Azerbaijan, with a specific focus on Russia's energy interests in the region. The research includes an analysis of key players such as Gazprom and Lukoil in Azerbaijan, and their future plans for energy...

Russia's invasion of Ukraine has accelerated global dynamics that profoundly impact the post-Soviet South. Relations with Russia are still strong, but the former subalterns are raising their voices. The empowerment is most visible in their foreign relations, but also tends to strengthen...

Transition economies, on the one hand, grapple with a communist legacy; on the other hand, they seek the optimal institutionalization for knowledge generation, dissemination, and commercialization to compete globally. However, the incumbent knowledge of certain aspects of their innovation...

Russia’s invasion of Ukraine has accelerated global dynamics that profoundly impact the post-Soviet South. Relations with Russia are still strong, but the former subalterns are raising their voices. The empowerment is most visible in their foreign relations, but also tends to strengthen...

On 1 January 2025, the Transit Agreement, which has provided political, commercial, technical and legal grounds for the transit of Russian gas across Ukraine during 2020-24, will expire. Once it happens – and if no extension or alternative transit arrangement are agreed – the transit will...

The Country Opinion Survey in Azerbaijan assists the World Bank Group (WBG) in better understanding how stakeholders in Azerbaijan perceive the WBG. It provides the WBG with systematic feedback from national and local governments, multilateral/bilateral agencies, media, academia, the private...

Although the number of econometric analyses related to the renewable energy sector in Azerbaijan is increasing, studies on nonparametric dimensionality reduction are rather sparse. Principal component analysis (PCA) and multiple correspondence analysis (MCA) were chosen to fill this apparent...

Transition economies, on the one hand, grapple with a communist legacy; on the other hand, they seek the optimal institutionalization for knowledge generation, dissemination, and commercialization to compete globally. However, the incumbent knowledge of certain aspects of their innovation...

The mission assisted the staff of the Central Bank of the Republic of Azerbaijan (CBAR) in compiling financial soundness indicators (FSIs) in line with the IMF's 2019 FSIs Compilation Guide. Specifically, the mission assisted the CBAR to compile 14 core and 9 additional monthly FSIs for deposit...

Growth is moderating following a strong post-pandemic rebound, and inflation is easing. The near-term challenge is to resume fiscal consolidation following a temporary easing, and to ensure that inflation-which has recently returned to the target band-does not reignite amid external risks and...