WORLD TRADE EXPO AZERBAIJAN

Azerbaijan ranks among the top ten global foreign investment markets in 2024

On January 5th, Azerbaijan’s “Trend” website reported that based on data from the International Monetary Fund and the Financial Times Cross border Investment Monitor, the “Annual Foreign Direct Investment Outstanding Observer List” evaluated the macroeconomic performance and foreign direct investment trajectory of the world’s top 50 foreign direct investment destinations, and ranked Azerbaijan as the seventh largest market country for foreign investment in 2024, with Cambodia, the Philippines, Kenya, Iraq, Namibia, Kazakhstan, Azerbaijan, Morocco, Serbia, and India ranking in the top ten.

In addition, the International Monetary Fund predicts a GDP growth rate of 2.5% for 2024.

Azerbaijan’s GDP growth in 2024

In the first five months of 2024, the Azerbaijani economy showed significant resilience and growth, with a significant increase in Gross Domestic Product (GDP). From January to May, GDP surged by 4.2%, reaching an impressive 4802.6 billion manats. Azernews conducted in-depth research on the factors that contributed to this economic improvement, with a particular focus on the significant growth in non oil and gas sectors.

One of the main drivers of Azerbaijan’s GDP expansion is the strong performance of the non oil and gas sector. According to the report of the Statistical Commission, the value-added output of the department has significantly increased, surging by 7.3% compared to the previous year. This growth indicates that the Azerbaijani economy has freed itself from traditional dependence on oil and gas revenue and achieved diversification.

Although the non oil and gas sector has experienced significant growth, the oil and gas sector has remained relatively stable. Despite global oil price fluctuations and increasing geopolitical tensions, Azerbaijan’s oil and gas industry has maintained its contribution to overall GDP, providing a solid foundation for economic stability.

Decomposing the composition of Azerbaijan’s GDP can provide a deeper understanding of the industries driving economic growth. The industrial sector leads with 39.7% of GDP, followed by trade and automotive maintenance (9.6%), transportation and warehousing (7.0%), construction (6.0%), agriculture, forestry and fisheries (3.8%), tourism accommodation and public catering (2.4%), and information and communication (1.8%). The remaining 20.1% of GDP comes from various other sectors. In addition, net taxes on products and imports played an important role, contributing 9.6% to GDP.

A significant aspect of Azerbaijan’s economic growth is its positive impact on per capita income. The per capita GDP is 4713.3 manats, and economic improvement has the potential to improve living standards and increase people’s purchasing power.

Multiple factors may have contributed to Azerbaijan’s strong economic growth. This includes measures taken by the government to achieve economic diversification, attract foreign investment, and promote entrepreneurship. In addition, ongoing infrastructure projects and efforts to improve the business environment may stimulate economic activity in various sectors.

The impressive GDP growth of Azerbaijan in the first five months of 2024 highlights the country’s economic resilience and potential for further development. The significant expansion of non oil and gas sectors, coupled with the stability of the oil and gas industry, reflects a positive trajectory of economic diversification and sustainability. Looking ahead, it is crucial to continue working towards creating a favorable business environment and investing in key sectors to maintain this momentum and drive long-term prosperity.

Azerbaijan has demonstrated remarkable economic performance in 2024, with its dual honors of GDP growth rate and global foreign investment market ranking highlighting the country’s prominent position on the global economic stage and its potential for sustained development. According to the International Monetary Fund’s forecast, Azerbaijan’s economic growth rate has reached 2.5%, reflecting its economic resilience and growth momentum. Especially in the first five months of 2024, Azerbaijan’s GDP grew rapidly at a rate of 4.2%, reaching a total of 4802.6 billion manats. This achievement not only demonstrates the effectiveness of economic structural adjustment, but also lays a solid foundation for sustained economic growth in the future.

One of the engines of economic growth in Azerbaijan is the significant expansion of the non oil and gas sector. The value-added output of this sector has grown by an astonishing 7.3%, demonstrating the significant progress made by the country in economic diversification. Despite fluctuations in the global oil market and geopolitical tensions, Azerbaijan’s oil and gas industry remains stable, providing reliable support and a stable source of income for the country’s economy.

Azerbaijan has been ranked as the seventh largest destination country in the global foreign investment market in 2024, which not only demonstrates its competitiveness in attracting foreign direct investment, but also reflects its favorable investment environment and the effectiveness of government driven economic reform measures. According to data from the International Monetary Fund and the Financial Times Cross Border Investment Monitor, Azerbaijan has performed outstandingly in macroeconomic performance and foreign direct investment trajectory, ranking among the top ten along with other countries such as Cambodia and the Philippines.

Another significant feature of Azerbaijan’s economic growth is its positive impact on per capita income. The per capita GDP has reached 4713.3 manats, indicating that economic growth is penetrating into the general population, improving people’s living standards and consumption capacity.

Behind this economic success, the government’s economic diversification strategy and policy measures to improve the business environment have played a key role. In addition, ongoing infrastructure projects and investments in key sectors have injected new vitality and momentum into the Azerbaijani economy. Looking ahead, continuing to optimize the business environment and promote sustainable development in more areas will be an important measure for Azerbaijan to maintain its economic growth momentum and achieve long-term prosperity. With the changing global economic environment, Azerbaijan will continue to strive for strategic goals of economic diversification and attracting foreign investment to strengthen its position and competitiveness in the global economy.