Growth in Azerbaijan's non-oil and gas sector strengthens economic diversification

Growth momentum continued in Azerbaijan's economy in January-August this year.

During the reporting period, the country produced 87.7 billion manats ($51.6 billion) in gross domestic product (GDP), indicating continued economic activity and development of the real sector. This was 1.2% more than in the same period last year.

The non-oil and gas sector once again served as the main driver in generating added value in the economy. Non-oil and gas GDP amounted to 61.5 billion manats ($36.2 billion), up 2.1% year on year.

Within the GDP structure, the total value of non-oil and gas industrial production increased by 5.4% to 14.6 billion manats ($8.6 billion), agricultural production rose by 2.6% to 10.1 billion manats ($5.9 billion), transport and warehousing services grew by 8.7% to 10.9 billion manats ($6.4 billion), while information and communication services increased by 10.7% to 2.7 billion manats ($1.6 billion).

Thus, growth in the non-oil and gas sector covered several areas, including expansion of industrial production, higher added value in agriculture, development of transport and logistics capabilities, and growth in information and communication services.

In mining, described as one of the important areas of the non-oil and gas industry, total production in January-August amounted to 26.9 billion manats ($15.8 billion). The figure shows that mining accounts for a significant share of industrial production.

Development of the sector creates conditions for more efficient use of the country's natural resources, stronger raw material supplies for industrial enterprises and new production opportunities. At the same time, closer integration of the raw material base created by mining with the processing industry is important for increasing added value in the non-oil and gas industry and strengthening economic diversification.

In the manufacturing industry, 14.9 billion manats ($8.8 billion) worth of products were manufactured and industrial services provided in January-August 2026.

Expansion of manufacturing not only increases domestic production capacity but also creates a basis for supplying finished products to the domestic market and expanding export opportunities. In this regard, converting manufacturing output into trade turnover and access to foreign markets is important for increasing added value in the non-oil and gas sector.

In January-August 2026, information and communication services increased by 10.7% to 2.7 billion manats ($1.6 billion), indicating continued development of services within the non-oil and gas sector.

Another important area of the non-oil and gas sector is agriculture. Agricultural production rose by 2.6% to 10.1 billion manats ($5.9 billion) in January-August 2026.

The development of agriculture is directly linked to manufacturing, food production, logistics and export opportunities. Processing a larger share of the added value created in agriculture domestically can help build longer and more sustainable value chains in the non-oil and gas sector.

Growth of 8.7% in transport and warehousing is also noteworthy. The sector's total value reached 10.9 billion manats ($6.4 billion) during the reporting period, highlighting the growing role of Azerbaijan's production, trade and transit capabilities in economic growth.

Expansion of industrial and agricultural production requires greater logistics capacity to bring products to domestic and foreign markets. Along with broader economic activity across various sectors, ensuring the sustainability of this growth amid macroeconomic stability is also important. Maintaining financial stability therefore remains a key factor.

Another important indicator of economic activity is the country's foreign trade dynamics. Azerbaijan conducted trade operations worth $33.2 billion with foreign countries in January-August this year, up 3.5% year on year.

Exports accounted for $21.8 billion of foreign trade turnover, while imports amounted to $11.4 billion. Over the past year, exports increased by 27.8%, while imports decreased by 24.1%.

As a result, Azerbaijan recorded a $10.4 billion foreign trade surplus, 5.2 times higher than a year earlier. In particular, the faster growth of exports compared with imports contributed to the positive shift in the foreign trade balance.

Overall, the January-August 2026 figures show that Azerbaijan maintained economic growth momentum, while the non-oil and gas sector continued to strengthen its role as one of the main areas of economic activity.