WNAM REPORT: The year 2024 stands as a defining moment in the modern history of Azerbaijan, marked by a series of significant political, economic, and social milestones. It was a year that witnessed robust economic growth, the advancement of key investment projects, and the successful implementation of social reforms. Notably, Azerbaijan continued its commitment to building a sustainable economy, with a focus on diversifying its economic base and enhancing resilience against external shocks. This shift toward sustainability was demonstrated through substantial investments in the non-oil sector, industrial modernization, and green energy initiatives. Furthermore, Azerbaijan’s role on the global stage was highlighted by the hosting of COP29 in Baku and its election to the D-8 Economic Cooperation Organization, events which underscored the nation’s expanding international influence and its growing prominence in global economic and environmental dialogues.
Economically, 2024 was characterized by sustained growth and diversification. The country’s GDP saw notable expansion, particularly in the non-oil sector, signaling a deliberate shift toward a more diversified economy. This strategic pivot was further evidenced by an increase in foreign exchange reserves and a reduction in foreign public debt, demonstrating Azerbaijan’s commitment to long-term economic stability and resilience. With inflation remaining under control at an annual rate of 4.9% and an average annual rate of 2.2%, the country succeeded in maintaining macroeconomic stability, which is crucial for fostering investor confidence and ensuring a favorable business environment.
Fiscal discipline was also a key highlight in 2024. Azerbaijan exceeded its state budget revenue target, achieving 102% of projected revenues, while expenditures were closely managed, with 95% of planned spending being executed. These outcomes underscore the government’s effective financial management, ensuring that public resources were allocated efficiently in alignment with both immediate priorities and long-term development goals. Moreover, the performance of industrial zones, which reached a production volume of 3.3 billion manat and generated exports worth 1.1 billion manat, further reflects the government’s successful efforts to boost industrial output and expand export markets.
The social sphere also saw substantial progress in 2024, with a significant portion of the state budget dedicated to enhancing social welfare. Notably, increases in pensions and social assistance were implemented, with special attention given to war veterans and families of martyrs. These reforms were not only aimed at improving the quality of life for vulnerable populations but also at fostering social cohesion and stability, which are fundamental for the country’s continued development.
In the realm of defense and security, Azerbaijan made significant strides in 2024. Extensive mine clearance operations, alongside increased defense spending, were instrumental in enhancing the nation’s security infrastructure. The government’s plans to clear over 65,000 hectares of land in 2025 further emphasize the strategic importance of these initiatives, which serve both to secure the country’s borders and to facilitate the rehabilitation of previously affected areas, providing both economic and social benefits.
Looking ahead to 2025, the Azerbaijani government’s priorities remain focused on infrastructure development and urban modernization. The planned allocation of 50 million manats to address issues related to dilapidated buildings and improve citizens’ living conditions reflects a commitment to modernizing urban infrastructure and ensuring safe, comfortable living environments for the population. Additionally, the allocation of 4 billion manats for the reconstruction and restoration of the liberated territories will play a pivotal role in revitalizing these regions. These investments are expected to stimulate economic growth, encourage the return of internally displaced persons, and foster the establishment of a sustainable, thriving living environment.
Moreover, the anticipated launch of the Igdir-Nakhchivan gas pipeline, with the participation of both Azerbaijan and Turkiye, will further enhance the region’s energy security and bolster the supply of natural gas to Nakhchivan. This critical infrastructure project will not only strengthen Azerbaijan’s energy framework but also deepen its strategic partnership with Turkiye, solidifying the bilateral cooperation between the two nations.
In conclusion, 2024 can be regarded as a year of substantial accomplishment for Azerbaijan, reinforcing the foundations for long-term political stability, sustainable economic growth, and enhanced social welfare. The advancements made throughout the year, coupled with the strategic initiatives outlined for 2025, pave the way for continued development and further solidify Azerbaijan’s standing on the global stage. The nation’s ongoing commitment to economic diversification, infrastructure modernization, and social cohesion, alongside its expanding international influence, positions Azerbaijan to elevate its political and economic leverage in the years ahead.
