Azerbaijan’s economy expanded by 1.2% year-on-year in January–August 2026, easing from 1.4% growth recorded over the first seven months of the year. The contraction in the oil and gas sector deepened (-0.8% versus -0.6% in January–July), while growth in the non-oil and gas sector softened slightly to 2.1% from 2.2%. Industrial output declined by 0.4%, reversing the 0.3% increase seen earlier. Growth in agricultural production also moderated, to 2.6% from 2.8%.
By contrast, several services segments continued to strengthen: transportation and warehousing services grew by 8.7% (up from 7.1%), information and communication services by 10.7% (from 10.4%), and retail trade turnover by 3.9% (from 3.8%). Investment in fixed capital increased by 10%, slightly below the previous 10.7%, reflecting weaker growth in investment in the non-oil and gas sector (1.4% versus 1.9%).
