Economy Minister Mikayil Jabbarov said in an interview with Public Television and AZERTAC that growth rates in the first four months of 2026 were slightly below expectations due to changes in the implementation timeline of several state projects.
According to the minister, construction activities for several planned state investments will be implemented in the next phase.
As a result, there is a sharp decline in the construction sector, which is primarily related to state construction projects rather than private ones. So, what sectors have the greatest impact on economic growth in Azerbaijan? Economist Khalid Karimli told Baku TV that the state's main policy over the past 10 years has been aimed at developing the non-oil sector:
"Looking at the indicators, we see some progress in the non-oil sector - both in non-oil industry and in information, communication, and technology. However, for more dynamic economic growth, rapid development of the private sector is essential. Exports, especially non-oil exports, should grow faster, and household spending should increase. That is, the country can ensure economic growth for some time through the previous model based on spending oil revenues. But this approach is not sustainable. Even over 10 years, growth based on this model is possible, but it could lead to a rapid decline in the state's foreign exchange reserves."
According to the expert, economic growth based on foreign exchange reserves is not sustainable and is temporary. In this regard, strengthening discipline in state budget expenditures and stimulating the development of the non-oil sector create more sustainable sources of economic growth. As a result, this transition period may lead to short-term lower growth rates.
