CBA: Construction sector's GDP share in Azerbaijan rises to 6.3%

In the first half of 2025, the nominal GDP of Azerbaijan's construction sector grew by 12.4%, with its share in total GDP increasing by 0.5 percentage points compared to the same period last year, reaching 6.3%, Report informs, citing the Central Bank of Azerbaijan's (CBA) semi-annual Financial Stability Report.

According to the document, this growth trend is linked to the recovery of investment flows-particularly due to large-scale infrastructure projects in the liberated territories-as well as major construction developments in Baku and surrounding areas, and strong demand in the real estate market.

"Although the sector's activity was low at the beginning of the reporting period, it increased in the following months, surpassing the level seen in January–June 2024. In recent years, while the construction sector's GDP share has shown some fluctuations, both its nominal volume and contribution to the overall economy have generally been growing," the Central Bank stated.

Data from the State Statistics Committee shows that a total of 8.07 billion manats was directed to fixed capital in January–June 2025, a 0.5% decrease compared to the same period last year.

Out of the total investment, 4.07 billion manats (50.4%) went to production sectors, 2.67 billion manats (33.1%) to service sectors, and 1.33 billion manats (16.5%) was spent on residential construction.

Domestic investments made up 6.07 billion manats or 75.2% of the total. Furthermore, 6.31 billion manats or 78.2% of the total was allocated specifically for construction and installation works.

1 manat=$0.59 (according to CBA's exchange rates for October 3)