In 2023 for the first time, we conducted an economic survey on the financial year and the expectations of Austrian subsidiaries in Azerbaijan. We are pleased to share the results of the survey with you and thank all the executives who participated in our survey for their time and valuable opinions.
Status Quo
As for the overall economic situation in the country, more than 50 % of the surveyed executives think it has stayed the same, one third say it has improved. Over the past year, the number of people employed in all the surveyed enterprises have stayed the same. In terms of feedback on company’s orders, about one third of respondents said that orders have increased compared to the previous year while almost 70 % said that they have stayed the same. In terms of total annual revenue, almost 70 % of executives have reported an increase and one third say it has stayed unchanged.
Investments
According to the survey results regarding investments in the Azerbaijani market one third of executives said they have stayed the same, one third said they have decreased and one third have abstained from answering. In terms of capacity utilization, all the executives have reported a steady figure.
Market Conditions and Regulations
According to most of the executives, labour costs were rated as quite good, while a small number of the surveyed executives had a negative opinion of labour costs. The predictability of economic policy and bureaucracy is largely viewed negatively. On the other hand, when it comes to infrastructure, most executives believe that Azerbaijan has a good infrastructure. However, in terms of digitalization most of the executives think the development is quite bad. Respondents generally rated purchasing power as weak and were largely negative about costs of raw materials and availability of credit as well as labour. Furthermore, the executives stated that they are not really satisfied with the quality of Azerbaijani local suppliers as well as the quality of their goods. Nevertheless, most of the respondents rated the political stability and the legal certainty as quite good.
Expectations for the next year
One third of executives expect business to improve while two thirds believe that it will stay the same over the next 12 months. All of them think that the number of employees will remain constant. Expectations for total revenue in the coming year are as followed: One third of executives expect no changes, one third believes in an increase and the last third expects a decrease. While 33,3% of the managers expect investments to remain constant, 33,3% believe they will decrease. For capacity utilization all representatives expect no changes.
Status Quo
As for the overall economic situation in the country, more than 50 % of the surveyed executives think it has stayed the same, one third say it has improved. Over the past year, the number of people employed in all the surveyed enterprises have stayed the same. In terms of feedback on company’s orders, about one third of respondents said that orders have increased compared to the previous year while almost 70 % said that they have stayed the same. In terms of total annual revenue, almost 70 % of executives have reported an increase and one third say it has stayed unchanged.
Investments
According to the survey results regarding investments in the Azerbaijani market one third of executives said they have stayed the same, one third said they have decreased and one third have abstained from answering. In terms of capacity utilization, all the executives have reported a steady figure.
Market Conditions and Regulations
According to most of the executives, labour costs were rated as quite good, while a small number of the surveyed executives had a negative opinion of labour costs. The predictability of economic policy and bureaucracy is largely viewed negatively. On the other hand, when it comes to infrastructure, most executives believe that Azerbaijan has a good infrastructure. However, in terms of digitalization most of the executives think the development is quite bad. Respondents generally rated purchasing power as weak and were largely negative about costs of raw materials and availability of credit as well as labour. Furthermore, the executives stated that they are not really satisfied with the quality of Azerbaijani local suppliers as well as the quality of their goods. Nevertheless, most of the respondents rated the political stability and the legal certainty as quite good.
Expectations for the next year
One third of executives expect business to improve while two thirds believe that it will stay the same over the next 12 months. All of them think that the number of employees will remain constant. Expectations for total revenue in the coming year are as followed: One third of executives expect no changes, one third believes in an increase and the last third expects a decrease. While 33,3% of the managers expect investments to remain constant, 33,3% believe they will decrease. For capacity utilization all representatives expect no changes.
