Azerbaijani entrepreneurs optimistic but cautious amid rising costs Deloitte Report

The business environment in Azerbaijan remains stable, though local entrepreneurs are adopting a more cautious outlook, according to the ninth edition of Deloitte’s macroeconomic report “Business Outlook in Azerbaijan.”

The findings of last year’s Business Confidence Survey show that 52.5% of respondents expect a partial increase in revenues over the next 12 months, while 25% foresee stability, 12.5% anticipate a decline, and 10% predict significant growth, Caliber.Az reports via local media.

However, the share of companies expecting a partial drop in operating profit rose to 47.5% — up from 37% in 2023 — indicating a more conservative stance among businesses. Meanwhile, 32.5% of respondents project stable profit levels, and 20% expect growth.

Rising costs also remain a concern. Sixty per cent of entrepreneurs forecast a moderate increase in wages, while 55% expect higher capital costs.

Inflation, limited access to financing, and weaker demand were identified as the top risks facing Azerbaijani businesses.

Overall, Deloitte’s report suggests that while Azerbaijan’s business environment continues to demonstrate resilience, companies are proceeding with caution amid cost pressures and external economic uncertainties.

By Vugar Khalilov