Deloitte: Business environment in Azerbaijan remains stable

The business environment in Azerbaijan remains stable, and entrepreneurs are cautiously optimistic, reads the ninth edition of Deloitte's macroeconomic update "Business Outlook in Azerbaijan," Report informs.

According to the results of last year's "Business Confidence Survey," 52.5% of respondents forecast a partial increase in revenues in the next 12 months, 25% expect stability, 12.5% ​​a decrease, and 10% a significant increase.

The number of companies expecting a partial decrease in operating profits has increased to 47.5% (37% in 2023), indicating a more cautious business stance. This is while 32.5% forecast profit stability, and 20% increase.

Some 60% of respondents expect a partial increase in wages, and 55% expect a decrease in the cost of capital.

Entrepreneurs cite inflation, financing difficulties, and declining demand as the main risks.

Overall, the update shows that the business environment in Azerbaijan is stable, but companies are proceeding cautiously given the risks and rising costs that may impact profit margins.