Core Insights - The industrial output of Azerbaijan for the first ten months of this year reached 52.6 billion manats (approximately 30.94 billion USD), reflecting a year-on-year decline of 1.2% [1] - The oil and gas sector experienced a decrease of 2.2%, while the non-oil and gas sector saw a growth of 4.9% [1] Industry Breakdown - The mining sector contributed 60.8% to the total industrial output, while the manufacturing sector accounted for 32.8% [1] - The production, transmission, and supply of electricity, gas, and steam represented 5.4% of the industrial output [1] - The water supply, waste management, and recycling sector contributed 1% to the overall industrial output [1]

Economic Growth - Algeria's economy is projected to grow by 3.9% in Q2 2025, slightly above the same period last year [1] - The non-hydrocarbon sector is becoming the true engine of economic growth, with a growth rate of 5.3% [1] - Manufacturing is recovering with a growth of 6.4%, while trade has increased by 6.7% [1] - Agriculture, despite unstable production, has grown by 4.5% and remains a pillar of the economy [1] - The electricity and gas sector has seen a significant growth of 9.7% due to increased capacity and demand [1] - The hydrocarbon sector experienced a slight decline of 1.2% in production [1] Domestic Demand and Investment - Domestic demand and investment have become the new drivers of economic growth, with domestic demand increasing by 10.2%, up from 6.8% in the same period last year [1] - Investment has risen significantly by 12.4% [1] - Government spending has increased by 3.1%, higher than the 2.3% growth in the previous year [1] - Household consumption has slightly decreased by 3.9%, but the decline is less than the previous year's drop of 4.1% [1] Inflation and Consumer Behavior - Inflation has significantly slowed down to 1.1%, down from 4.1% in the same period last year [2] - Food prices have decreased by 1.4%, largely due to a drop in vegetable prices, although some food items like chicken and fruits have seen price increases of 19% and 21.6% respectively [2] - The overall price of processed foods has decreased by 0.7%, while children's clothing and school supplies have seen declines of 1.6% and 7.7% respectively [2] - The data indicates a diversification of the economy, but consumer spending growth is slowing, reflecting more cautious household consumption habits [2]

Group 1 - The total fixed asset investment in Azerbaijan for January to August 2025 is 113.7 billion manats (66.9 billion USD), showing a year-on-year decrease of 0.2% [1] - Investment in the oil and gas sector has decreased by 16.6%, while investment in the non-oil and gas sector has increased by 8% [1] - Of the total investment, 58 billion manats (34.1 billion USD) is allocated to production, accounting for 51% of the total; 38.2 billion manats (22.5 billion USD) is for the services sector, making up 33.6%; and 17.5 billion manats (10.3 billion USD) is for residential construction, representing 15.4% [1]