Azerbaijan's GDP declined by 6.6% m/m and by 3.3% y/y to AZN4bn (€2.3bn) in January, according to the country's State Statistics Committee (Azstat). However, in nominal terms GDP grew by 12% y/y, from AZN3.6bn (€2bn) in January 2015. Output of the non-oil economy declined by 3.7% y/y to AZN2.7bn (€1.54bn), while energy output declined by 2.4% y/y to AZN1.3bn (€0.74bn).

Azerbaijan has suffered as a result of low oil prices since June 2014, which has resulted in monetary instability, lower export revenues and high inflation. Oil and gas accounted for some 40% of GDP in 2013, but the contribution of the energy sector to the economy has declined to under 30% as a result of the decline in prices.

Azstat reported a 1.1% GDP growth in 2015, from AZN59bn (€33.7bn) at end-2014 to AZN54bn (€30.87bn) at end-2015. In nominal terms, GDP contracted by 7.8%, while the Azerbaijani manat lost some 50% of its value and the official inflation rate was 4% in 2015, so it is unclear how Azstat calculates real GDP growth.

In January, the volume of industrial production declined by 3.1% m/m in nominal terms and by 2% m/m in real terms to AZN2.11bn (€1.21bn), with the private sector accounting for over 75% of industrial production. Hydrocarbons continue to account for the lion's share of industrial production - 62.2% in January, followed by electricity generation - 8.1%, and manufacturing - 28.8%.