In 2022, the President of the Republic of Azerbaijan approved two important policy documents: the Socio- Economic Development Strategy of the Republic of Azerbaijan (2022-2026) and the State Programme for the Great Return to the Liberated Territories of the Republic of Azerbaijan (2022-2026).


These documents guide the implementation of the vision set forth in Azerbaijan 2030: National Priorities for Socio- Economic Development and the strong commitment from the Government to the 2030 Agenda and the Sustainable Development Goals (SDGs).

The Socio-Economic Development Strategy outlines five national priorities:
1. Sustainably growing competitive economy
2. Dynamic, inclusive, and equitable society
3. Competitive human capital and modern innovations
4. The great return to the territories liberated from occupation
5. Clean environment and “green growth” country


A total of 32.7 Azerbaijani manat (USD 19.2 billion) is expected to be required for implementation of the Strategy, 58.7 percent of which towards the implementation of the State Programme for the Great Return.

The economy expanded by 4.6 percent in 2022. While the energy sector contracted by 2.7 percent from the previous year, non-energy sectors grew by 9.1 percent in comparison to 2021. Among the main drivers of growth were tourism, accommodation and public catering, transport and warehousing, information and communications, and construction.
The war in Ukraine has not caused major disruptions on Azerbaijan’s trade. The surge in global energy prices has
boosted external revenues and pumped up the country’s foreign exchange reserves and fiscal buffers.

Inbound remittances grew at a remarkable rate: by the third quarter of 2022, the level was already 2.5 times more than that of the entire previous year. However, dependence on food imports from abroad, coupled with soaring global commodity prices and supply chain disruptions, have driven up prices in the country, resulting in an overall annual inflation rate of 13.9 percent, including a food inflation rate of 19.5 percent in 2022.
Effective 1 January 2023, the government introduced a series of fiscal policy measures, including the increase of the minimum wage, pensions, and subsistence minimum, in order to limit the impact of higher prices on vulnerable groups. Despite GDP growth and solid fiscal buffers, Azerbaijan’s economic transition performance is lagging behind the regional average—especially in resilience and competitiveness—as noted in the transition quality report of the European Bank for Reconstruction and Development
(EBRD).

In April 2022, the President approved the National Anti- Corruption Strategy for 2022-2026, which aims to increase government transparency, prevent corruption, and strengthen public accountability. In parallel, the authorities launched new portals to encourage citizens’ e-participation in decision-making. Financial inclusion has been strengthened. In March 2022, the Central Bank of Azerbaijan enabled banking products and services to be sold by third parties to offer better access to financial services for people in areas with little coverage by bank branches.
In June 2022, amendments to the tax code to form a favourable tax regime in the capital markets came into force. Dividends and interest income from publicly traded shares and bonds will be exempt from income tax for five years, starting in February 2023.

Demining, reconstruction, and the return of internally displaced persons (IDPs) have remained among Azerbaijan’s top priorities since 2020. The Government has initiated a range of institutional mechanisms, extensive land use planning, physical reconstruction, and engagement with IDPs and the business sector for integrated recovery and rehabilitation of conflict-affected districts.

In 2022, Azerbaijan’s ranking in the “SDGs Index” moved up to 50th place (from 55th in 2021) among 163 countries, achieving 73.5 points out of 100, which is higher than the regional average of 71.6 points for Eastern Europe and Central Asia. Azerbaijan has made progress on the SDGs related to poverty, nutrition, education, clean water, and sustainable cities and communities. However, the report highlighted challenges in such areas as health, water, renewable energy, and research and development.

Azerbaijan’s Human Development Index (HDI) value for 2021 was 0.745, putting it at 91 out of 191 countries and territories. However, when adjusted for inequality, the HDI fell to 0.685. The Gender Inequality Index—which measures gender inequalities in reproductive health, empowerment, and labour—showed a value of 0.294, ranking the country 70 out of 170 countries.