Azerbaijan’s currency reserves exceed external public debt by nearly 18 times

Azerbaijan’s foreign currency reserves reached $85.1 billion at the beginning of the year, exceeding the country’s external public debt by around 17.7 times, Finance Minister Sahil Babayev said.

Speaking during discussions in the Milli Majlis on the draft law on the execution of the 2025 state budget, the minister said Azerbaijan’s economy continued to show stable growth last year.

According to Babayev, Azerbaijan’s real GDP grew by 1.4% in 2025 and reached 129.1 billion manats. GDP per capita rose to 12,600 manats.

The minister noted that economic diversification and the development of the non-oil sector remained important drivers of growth. The non-oil sector expanded by 2.7% and accounted for 72% of GDP, or 92.3 billion manats. This was 6.1 billion manats more than in 2024.

Non-oil exports also increased by 8.1%, reaching $3.6 billion.

Babayev said the surplus in the balance of payments, together with coordinated monetary and fiscal policy, helped preserve the stability of the national currency.

Inflation stood at 5.2% in December 2025, while average annual inflation was 5.6%, remaining within the target range.

The minister also said income per capita rose by 7.6%, outpacing inflation and indicating an improvement in living standards.

Babayev stressed that Azerbaijan is among the countries whose foreign currency reserves exceed the size of GDP. According to him, the reserves amounted to 112.1% of GDP, providing a strong foundation for macroeconomic stability.

He added that the average price of Azeri Light crude oil in 2025 was around $71 per barrel, which was 1.4% higher than the budget forecast.