Drafts of the new Strategy covering 2027-2030 and the Second State Program on the Great Return have been prepared, discussed extensively by the Economic Council and submitted to the President of Azerbaijan.
Operative Information Center-OMM reports that Prime Minister Ali Asadov made the remarks at a Cabinet of Ministers meeting chaired by him.
“In connection with the new state programs adopted by the President recently, final work is being carried out on the Strategy, which is expected to be approved in the coming months,” he said.
Asadov also said that, taking into account the expected growth rates through 2026 since the Strategy was adopted in 2022, the average annual growth rate of the non-oil and gas sector is expected to stand at 5.1%.
“Despite global risks, macroeconomic and financial stability has been maintained in Azerbaijan during the reporting period of the current year, and our main macroeconomic indicators remain stable. Overall, economic growth has been ensured amid a decline in output and growth rates in the oil and gas sector. In January-August 2026, GDP increased by 1.2% in real terms, including a 2.1% real increase in non-oil and gas GDP and a 0.8% decline in oil and gas GDP. Investments in fixed capital rose by 10%.
During the first eight months of the current year, measures were implemented to support economic activity, including the launch nationwide of an interest subsidy mechanism for loans and the allocation of additional budget funds under relevant presidential decrees and orders, the provision of transport and logistics subsidies, and compensation for certain export costs. Azerbaijan’s strategic foreign exchange reserves currently amount to approximately $91 billion. This figure is nearly 20 times higher than the country’s external public debt. As of September 1, direct external public debt stood at $4.5 billion, accounting for 5.6% of projected GDP. In the first eight months of 2026, the foreign trade balance recorded a positive surplus of more than $10 billion. Annual inflation stood at 5.7% during the eight-month period. Taking into account forecasts by international organizations for food and commodity prices, the stability of the manat’s exchange rate and balance in the foreign exchange market, average annual inflation is projected to decline to 5.3% next year and remain within the target range,” Asadov said.
The Great Return program is part of Azerbaijan’s long-term efforts to rebuild territories liberated from occupation and ensure the safe, voluntary and dignified return of residents. The new strategy is expected to guide reconstruction, infrastructure development and resettlement policies for 2027-2030.
