On October 18, according to Deloitte’s ninth macroeconomic report, Business Outlook in Azerbaijan, and its 2024 Business Confidence Survey, Azerbaijani business activity showed steady growth, with increasing sectoral diversity and rising income levels. During the survey, the results indicated that the banking and financial services sector accounted for the largest share of participants at 28%, followed by trade and transport-logistics, each at 15%. Compared to previous years, the business landscape in Azerbaijan has become more balanced, with growing representation from technology, construction (8%), agriculture (3%), mining and metallurgy (3%), and other industries (10%).

From a financial perspective, 38% of companies reported annual revenues below 5 million manats (around $2.94 million). Firms earning between 10–100 million manats ($5.88–$58.82 million) and 100–500 million manats ($58.82–$294.12 million) each represented 15%, showing growth from 2023 levels (44%). Companies with revenues between 500 million and 1 billion manats ($294.12–$588.24 million) and over 1 billion manats ($588.24 million) accounted for 10%. Deloitte emphasized that while the business environment remains stable, entrepreneurs maintain a cautious optimism.

The survey revealed that 52.5% of respondents anticipated a partial increase in revenues over the next 12 months, 25% expected stability, 12.5% predicted a decrease, and 10% foresaw significant growth. Meanwhile, 47.5% forecasted a partial decline in operating profits (up from 37% in 2023), while 32.5% expected stability and 20% anticipated growth. Approximately 60% of companies projected partial wage increases, and 55% expected reductions in the cost of capital. Inflation, financing challenges, and declining demand were cited as key risks affecting business operations.

Looking ahead, Azerbaijani companies expect the highest growth over the next five years in construction and raw materials (20%) and transport and logistics (20%). These were followed by telecommunications and media (15%), tourism (15%), agriculture (15%), manufacturing (7.5%), electricity and utilities (5%), and retail and services (2.5%). Cybersecurity also emerged as a significant concern, with 32.5% of respondents rating cyber threats as serious, 27.5% as moderate, 30% as low, and only 10% believing they would have no impact on operations.