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Azerbaijan's Parliamentary committee chairman explains low economic growth rate

19 November 2025 12:50 (UTC +04:00)

Chairman of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship, Azer Amiraslanov, clarified why the economic growth rate is low, APA reports.

During the discussion of the draft law “On the State Budget of the Republic of Azerbaijan for 2026,” at the plenary session of the Milli Majlis, held today Azer Amiraslanov said that the decline in the share of the oil sector in the economy, and against this background, economic growth amounting to 1.3 percent in the first 10 months of the current year, the expectation of 3 percent growth by the end of the year, and the projection of 2.9 percent for next year — is neither stagnation nor any kind of economic pathology, as some present it.

The chairman of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship, noted that the projected economic growth for 2026 — which is almost at the same level as the expected global growth rate — reflects the changes in the structure of industry, specifically the decline in oil production: “The reality is that the decrease in production, in turn, can slow the growth rate of the non-oil sector due to structural transformation. I wonder since when the renewal in the structure of the economy and industry, and the decline in oil production stemming from geological and technological characteristics, have been considered economic recession or stagnation? I would like to remind that the production dynamics of Azerbaijan’s oil industry were determined long ago based on long-term geological and technical forecasts within the framework of the ‘Contract of the Century.’ Looking at the actual figures, oil production rose from 9 million tons in 1995 to 51 million tons in 2010. Since 2011, however, production has gradually decreased — dropping to 34 million tons in 2020 and to 23 million tons in the first 10 months of 2025. This dynamics of oil production has been taken into account in our state’s economic strategy, particularly in budget planning and in the model of managing oil revenues.”