Azerbaijan: Rising Drug Addiction and Economic Challenges

Azerbaijan is currently navigating a period marked by an increase in registered drug users, alongside various economic shifts, demographic changes, and evolving international relations.

The number of individuals registered as drug users in Azerbaijan has increased. Last year, 4,967 people were registered for the first time with drug addiction, which is a rise from 3,796 in 2023 and 2,723 in 2020. Overall, 40,490 people were registered in medical institutions due to drug addiction last year, an increase of 3,831 compared to 2023. In addition to drug addiction, 2,492 individuals were registered for toxicomania and 7,738 for episodic drug use in medical institutions last year. The number of people seeking hospital treatment for alcoholism and alcoholic psychosis reached 9,578 in 2024. Experts do not consider these official figures on drug users to be realistic, suggesting that many users are unregistered or evade registration. A former drug addict reportedly claimed that drugs are sold to children in school toilets to get them accustomed to drug use.

Heating service prices have risen by over 40%. The tariff for residential consumers increased from 14.6 manat to 21 manat per gigacalorie (including VAT). For properties without a meter, the monthly charge increased from 0.3 manat to 0.45 manat per square metre (including VAT). These changes took effect from 1 November in mountainous regions and 15 November in other areas, following earlier price increases for gas and electricity in January.

In the housing market, prices rose by up to 14%. The price index for the overall housing market increased by 13.8% in January-June 2025 compared to the same period last year. Despite this, the number of registered property ownership rights decreased slightly in the same period.

Beef prices have risen by approximately 15% in recent weeks, reaching about 16 manat per kilogram. This increase is attributed to rising feed costs and reduced grazing areas due to cotton cultivation.

Industrial output continues to decline, with a 2.3% decrease in January-July 2025 compared to the previous year. Production in the oil and gas sector decreased by 3.5%, although the non-oil and gas sector saw a 5.5% increase. The mining sector accounts for 61.5% of industrial output.

Azerbaijan's Gross Domestic Product (GDP) increased by a modest 0.9% to 72.43 billion manats in January-July 2025. However, it lags behind neighbours like Georgia, which reported a 6.3% real economic growth in June 2025.

Regarding employment, the number of state employees decreased by 23,300 in the last year, while the number of non-state employees increased by 33,300. Independent economists dispute official unemployment figures, claiming that registering as unemployed is challenging.

Azerbaijan is experiencing a rapid decline in birth rates. In the first half of this year, 45,616 births were registered, a 6.3% decrease compared to the same period last year. The birth rate per 1000 population fell from 9.6 to 9.0. The prevalence of boys in newborns (53.3% versus 46.7% for girls) is attributed to selective abortions, which have also significantly increased. The birth rate has sharply fallen by 60% over the last decade. Social factors such as rising inflation, real wages being eroded by inflation, and the abolition of monthly child benefits (uşaqpulu) in Azerbaijan since 2006 are also cited as contributing to the declining birth rate. Residents of Bayırşəhər in the Yasamal district of Baku have appealed for historical buildings in the area to be preserved and repaired, even offering to fund restorations through donations.

Concerns have been raised regarding the treatment of jailed public activist Bəxtiyar Hacıyev, whose family claims he is being treated "like a captive," subjected to psychological and physical pressure, and denied adequate medical care and full access to his lawyer. Hacıyev, sentenced to 10 years, denies the charges and states his arrest is politically motivated. Similarly, Məhəmməd Kekalov, arrested as part of the "AbzasMedia case," has reportedly been denied telephone access to his lawyer. He was sentenced to 7 years and 6 months. Other journalists from "AbzasMedia" and AzadlıqRadiosu have received lengthy sentences (8 to 9 years) on charges they deny, asserting their arrests are politically motivated due to their corruption investigations. Over 30 journalists and public activists have been arrested on smuggling charges since November 2023. Local human rights organisations list over 370 political prisoners in Azerbaijani prisons; however, officials deny the existence of political prisoners, stating that individuals are prosecuted solely for criminal acts.

Azerbaijan recently conducted tactical combat exercises in the Caspian Sea to protect energy infrastructure, occurring amidst strained relations with neighbouring Russia. Tensions with Russia escalated following operations against ethnic Azerbaijanis in Yekaterinburg, which resulted in two deaths and several arrests. This was followed by the arrest of Russian citizens in Azerbaijan for drug and cybercrimes, and the arrest of leadership from "Sputnik-Azerbaijan". Russia's Ministry of Foreign Affairs stated it is working with Baku on options for the early release of arrested Russian citizens. Azerbaijan has also faced information campaigns and cyberattacks from a neighbouring state, with some activities potentially compromising user data. On the diplomatic front, Azerbaijan, the US, and Armenia signed a Joint Declaration in Washington, and a peace agreement was initialled, aiming to establish unhindered connection between Azerbaijan's main part and its Nakhchivan region. The European Union (EU) has expressed support for these Washington agreements, with EU Council President Antonio Costa discussing their implementation with Azerbaijani and Armenian leaders. This "Tramp route" is considered a significant step for regional transport.