Azerbaijan's GDP hits $35 billion with strong growth in non-oil sectors

Azerbaijan's GDP amounted to 59,520.4 billion manats ($35.012 billion) from January to June 2024, reflecting a 4.3 per cent increase compared to the same period in 2023.

According to the statistics, the added value in the oil and gas sector rose by 0.6 per cent, while the non-oil and gas sector saw a 6.9 per cent increase, Caliber.Az reports citing the Azerbaijani State Statistics Committee.

In the GDP structure, 38.5 per cent is attributed to industry, 9.7 per cent to trade and vehicle repair, 7 per cent to transport and warehousing, 5.8 per cent each to construction and agriculture, forestry, and fishing, 2.4 per cent to tourist accommodation and catering, and 1.7 per cent to information and communications.

Other sectors made up 19.5 per cent, while net taxes on products and imports accounted for 9.6 per cent of the GDP. The GDP per capita reached 5,840.7 manats ($3,435.7).

Azerbaijan's GDP has experienced significant changes over the past few decades, driven by its rich natural resources, particularly oil and gas.

The early 2000s saw an oil boom that propelled Azerbaijan's GDP growth. The surge in oil production and exports significantly increased national revenue, allowing for extensive infrastructure projects, social programs, and improvements in public services. The State Oil Fund of Azerbaijan (SOFAZ) was established in 1999 to manage oil revenues and ensure long-term economic stability.

Recognizing the risks of over-reliance on oil, Azerbaijan has made efforts to diversify its economy. The government has invested in non-oil sectors such as agriculture, tourism, information technology, and manufacturing.

The industrial sector, primarily driven by oil and gas, remains a significant component of Azerbaijan's GDP. However, other sectors like agriculture, construction, trade, and services have increasingly contributed to economic growth. The government continues to prioritize sectors with high growth potential and seeks to attract foreign direct investment to further diversify the economy.