Azerbaijan’s next phase of economic development will increasingly depend on its ability to transform domestic resources into higher-value products, strengthen manufacturing capabilities and expand its presence in international markets. Cooperation between Azerbaijani and German companies offers a practical pathway towards these objectives, particularly in food processing, industrial automation, advanced packaging and production engineering. The German-Azerbaijani Business Conference in Baku provides an opportunity to connect these ambitions with the expertise of one of Europe’s leading industrial economies.
The economic foundations for deeper cooperation are substantial. Azerbaijan’s gross domestic product reached 129.1 billion manats in 2025, while the non-oil and gas economy generated 92.3 billion manats and expanded by 2.7%. Industry accounted for 33% of national GDP.
Meanwhile, non-oil and gas industrial production increased by 5.5%, reaching approximately 21 billion manats. These figures demonstrate the growing importance of productive capacity beyond hydrocarbons and establish a strong rationale for international industrial partnerships. Germany brings valuable experience in precision engineering, manufacturing automation, food technology and industrial equipment.
Azerbaijani businesses can combine these capabilities with domestic agricultural resources, an established energy sector, improving transport connectivity and access to regional markets. Such cooperation could encompass machinery procurement, joint production facilities, technical licensing, engineering services and long-term partnerships between manufacturers. Bilateral trade already provides a considerable foundation.
In 2025, trade turnover between Azerbaijan and Germany reached approximately $1.38 billion, comprising $826.1 million in imports and $550.1 million in Azerbaijani exports. German machinery, electrical equipment, vehicles and precision instruments represent important components of the commercial relationship. Expanding industrial cooperation could gradually create additional opportunities for Azerbaijani producers to supply processed goods, intermediate products and manufactured items to German buyers.
Food processing offers particularly promising opportunities. Azerbaijan’s non-oil exports reached approximately $3.6 billion in 2025, with food exports accounting for around $1.2 billion after growing by 18.4%. Agricultural exports increased by 26.7% to $1 billion, while combined agricultural and agro-industrial exports reached approximately $1.3 billion.
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