BAKU, Azerbaijan, February 28. The GDP of the Nakhchivan Autonomous Republic increased by 3.1 percent compared to the previous year, signaling robust economic growth in 2024.
The data obtained by Trend from the country's Ministry of Economy shows that the rise in domestic revenues has played a key role in ensuring sustainable economic development. The share of local revenues in covering expenses in the Nakhchivan Autonomous Republic was 30 percent in 2022, 38 percent in 2023, and 57 percent in 2024. A significant portion of these local revenues—87.5 percent —was generated through contributions from the Ministry of Economy.
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Tax policy has been a key tool for regulating the economy in NAR, focused on stimulating growth and improving the business environment. In 2023 and 2024, tax control activities were minimized, and taxpayer service centers were opened in the cities of Nakhchivan, Sharur, Babek, and Ordubad. These efforts led to a voluntary tax compliance rate of 99.1 percent and a voluntary declaration rate of 99.5 percent in 2024.
As a result of these measures, tax revenues in Nakhchivan saw a 37.6 percent increase in 2024, totaling 226.6 million manat ($133.2 million) —exceeding the forecast by 30.2 percent.
Moreover, active labor contracts in the non-state sector increased by 3.6 times, reaching 11,038.
The privatization process has also been optimized, with income from the privatization of state assets rising by 23.5 percent, income from leasing state property growing by 87.6 percent, and income from the sale of small state enterprises and non-residential premises at auctions increasing 13-fold.
In 2024, the number of applications submitted via electronic services increased 4.8 times compared to 2023, reaching 6,500.
The "VAT Return" project refunded 1.4 million manat ($823,500) to consumers in 2024, marking a 68 percent increase from the previous year.
Social contributions have also seen significant growth. Mandatory state social insurance revenues grew by 9.7 percent to 162 million manat ($95.2 million), while revenues from the non-state sector increased by 15.8 percent, totaling 25.4 million manat ($14.9 million). Contributions to the unemployment insurance fund rose by 11.4 percent to 4.4 million manat ($2.5 million), and contributions to mandatory health insurance grew by 18.9 percent, totaling 28.9 million manat ($17 million).
The privatization process has also been optimized, with income from the privatization of state assets rising by 23.5 percent, income from leasing state property growing by 87.6 percent, and income from the sale of small state enterprises and non-residential premises at auctions increasing 13-fold.
In 2024, the number of applications submitted via electronic services increased 4.8 times compared to 2023, reaching 6,500.
Ongoing efforts to simplify administrative procedures for businesses, enhance management skills, and provide subsidized loans have continued. Additionally, the volume of non-performing loans through the Entrepreneurship Development Fund decreased by 3.1 times last year.
These achievements reflect the ongoing progress and stable socio-economic development trends in Nakhchivan, as well as the favorable business environment and the effectiveness of the tax system.