BAKU, Azerbaijan, August 26. Production of the gross domestic product (GDP) in Nakhchivan has exceeded 927 million manat ($545.3 million), Fuad Najafli, the authorized representative of the President of the Republic of Azerbaijan in the Nakhchivan Autonomous Republic, said at a special session at the Cabinet of Ministers dedicated to President Ilham Aliyev’s visit to Washington, Trend reports.
"As a result of implementing the State Program, subsidies from the Azerbaijani state budget allocated to Nakhchivan decreased from 425 million manat ($250 million) in 2022 to 120 million manat ($70.5 million) in the first seven months of 2025. This indicates that the reforms being implemented in the Autonomous Republic are producing real results," he said.
He added that economic indicators from January through July 2025 also reflected positive trends.
"GDP production grew by 4.8 percent to 927.3 million manat ($545.4 million), GDP per capita rose by 4.3 percent to 1,967 manat ($1,157), investments in fixed capital increased by 45.9 percent to 118.4 million manat ($69.6 million), industrial output grew by 14 percent to 297.5 million manat ($175 million), retail turnover increased by 3.7 percent to 789.4 million manat ($464.3 million), and paid services rose by 5.8 percent to 120.2 million manat ($70.7 million).
Over the same period, the economically active population grew by 3.5 percent to 273,000, while the employed population increased by 0.8 percent to 260,000. The average monthly salary rose by 6.3 percent to 826 manat ($485.8).
As of July 2025, the number of hired employees reached 60,565, including 37,305 in the public sector and 23,260 in the non-state sector.
Local revenues funded 64 percent of budget expenditures, significantly higher than the previous forecast of 47.3 percent. Tax revenues also increased: personal income tax rose by 19 percent to 32 million manat ($18.8 million), corporate profit tax grew by 8 percent to 13 million manat ($7.6 million), VAT increased by 34 percent to 41 million manat ($24.1 million), excise tax rose by 34 percent to 44 million manat ($25.8 million), and mineral extraction tax grew by 22 percent to 991,000 manat ($582,941).
A slight decrease was observed in simplified taxation due to reduced real estate sales and cash transactions in banks.
Meanwhile, revenue from leasing state property increased, with state land rentals up 42 percent to 217,300 manat ($127,823) and property rentals rising 5.7 times to 334,000 manat ($196,470).
In the first seven months of 2025, loans to the economy grew by 33 percent to 252.5 million manat ($148.5 million), banking deposits of the population increased by 57 percent to 31.8 million manat ($18.7 million), and cashless payments rose by 31 percent to 592.3 million manat ($348.4 million). The number of bank accounts increased by 11 percent, while the number of payment terminals surged by 85 percent," Najafli added.
Stay up-to-date with more news on Trend News Agency's WhatsApp channel