BAKU, Azerbaijan, November 7. Azerbaijan’s well-developed extraction and export infrastructure provides macroeconomic resilience, Trend reports citing Boston Consulting Group (BCG).
“Azerbaijan’s economy rests on a solid energy foundation. As of 2024, the oil and gas sector accounted for about 30% of GDP and attracted 80% of foreign investment over the past decade, remaining a key source of budgetary stability and economic growth.
Well-developed extraction and export infrastructure, combined with the resources of the sovereign wealth fund, provide macroeconomic resilience and create the space for modernizing traditional industries and developing new ones,” reads the latest report published by the BCG.
The analysts note that the country maintains a high level of foreign economic activity2, but its export portfolio remains heavily concentrated: roughly 90% of exports are energy resources, about half of which are destined for Italy. Azerbaijan also plays an important role as an alternative gas supplier to Southern Europe.
“Azerbaijan’s contribution to the European Union’s energy security motivates EU member states to further strengthen cooperation. However, the limited number of major foreign economic partners presents a number of risks. These risks can be mitigated by expanding export geography and developing energy processing capacities to diversify the export structure and stimulate the growth of new economic sectors,” the report says.