BAKU, Jan 09 (Azernews) – In a recent interview with local media, President Ilham Aliyev provided a comprehensive analysis of Azerbaijan’s socio-economic results for 2024, highlighting the country’s economic performance and its trajectory toward 2025. Reflecting on the year’s achievements, President Aliyev emphasized the importance of non-oil sector growth, fiscal prudence, and strategic planning as pivotal factors in Azerbaijan’s ongoing development.
Solid Economic Growth Despite Global Challenges
Azerbaijan’s economy showed resilience in 2024, achieving a Gross Domestic Product (GDP) growth rate of over 4 percent, an impressive result given the current global economic uncertainties. President Aliyev highlighted the significance of the country’s non-oil sector in driving this growth. With the global decline in oil production, Azerbaijan has increasingly relied on diversification, and the non-oil sector grew by over 6 percent. This sector’s success was primarily driven by an expansion in non-oil industrial production, which saw a remarkable increase of more than 7 percent. According to President Aliyev, this growth rate is notable when compared to the global economy, where many developed countries have faced stagnation or recession.
“After years of economic reforms, transparency, and the fight against monopolies, Azerbaijan has made significant strides in creating a positive investment climate,” President Aliyev remarked.
This transformation has not only led to substantial economic growth but has also attracted international recognition. Leading international rating agencies have acknowledged the country’s progress, though the President believes there is still room for a higher rating given Azerbaijan’s economic stability and development.
Financial Strength: A Key Indicator of Sovereignty
One of the most striking features of Azerbaijan’s economic position is its financial health. President Aliyev underscored the country’s ability to significantly increase its foreign exchange reserves, which rose by over $5 billion, bringing the total reserves to a substantial $72 billion. He emphasized that this level of reserves is exceptional for a country with a population of 10 million, placing Azerbaijan among the top countries globally in terms of per capita reserves.
Equally impressive is the ratio of Azerbaijan’s foreign debt to GDP, which stands at a mere 7.2 percent—one of the lowest in the world. This ratio is far lower than in many developed countries, where foreign debt often exceeds 100 percent of GDP. Furthermore, Azerbaijan’s foreign exchange reserves exceed its foreign debt by 14 times, a testament to the country’s financial independence. This remarkable fiscal health provides the government with a solid foundation for future investments and economic expansion without relying on external financing.
“We do not need external financing to maintain stability; however, we are now exploring options to increase foreign debt slightly to fund critical investment projects, particularly in the post-conflict reconstruction of Garabagh,” President Aliyev explained. The government’s prudent fiscal policies and management have allowed Azerbaijan to accumulate substantial reserves, while minimizing its foreign debt—a balancing act few countries can replicate.
Record Budget and Robust Social Programs
Azerbaijan’s economic prosperity has translated into a record-setting national budget for 2025. With total budget expenditures exceeding 41 billion manats and the overall budget surpassing 48 billion manats, this year marks the largest budget in the country’s history. The increased budget reflects both the strength of Azerbaijan’s economy and its ability to allocate significant resources to social welfare and infrastructure projects.
“Despite record-level budget expenditures and major investments, especially in Garabagh’s reconstruction, we have managed to improve our foreign exchange reserves,” President Aliyev remarked. Social welfare has been a core focus of the government, with increases in minimum wages and pensions aimed at supporting the most vulnerable segments of society. As of January 1, 2025, the minimum wage increased by 55 manats to 400 manats, while the minimum pension rose by 40 manats to 320 manats. These increases, averaging 14-15 percent, are above the inflation rate of 2 percent, making a significant positive impact on citizens’ purchasing power.
Social Packages and National Well-Being
Since 2020, Azerbaijan has implemented four major social packages, allocating more than 7 billion manats for social support programs. These efforts have been particularly beneficial for those in the most vulnerable sectors of society, providing additional economic relief during challenging times. The President emphasized that these actions are a direct reflection of the government’s commitment to social justice, with a focus on improving the living standards of Azerbaijani citizens year after year.
“Economic independence is the foundation of political independence,” President Aliyev stated, underscoring the idea that Azerbaijan’s robust economic performance not only strengthens its sovereignty but also enables it to pursue an independent and active foreign policy. The government’s focus on economic self-reliance has allowed it to remain flexible and agile in addressing domestic challenges, such as the complex process of reconstructing Garabagh.
Looking to 2025: Continuity and Growth
As Azerbaijan enters 2025, the economic outlook remains positive, driven by continued growth in the non-oil sector, fiscal discipline, and strategic investments in key sectors such as infrastructure and social welfare. The government’s focus on improving the investment climate and promoting industrial diversification is expected to continue fostering long-term, sustainable growth. While external challenges persist, Azerbaijan’s internal strength and strategic economic policies provide a strong foundation for future progress.
In conclusion, President Aliyev’s interview presents a picture of an economy that is not only growing but is increasingly resilient to global economic shocks. Azerbaijan’s success lies in its ability to balance fiscal responsibility with social welfare, ensuring that the benefits of growth are felt across society. The positive economic indicators of 2024 lay a solid foundation for a prosperous 2025, with a continued focus on independence, stability, and the well-being of the Azerbaijani people.
