Baku:The nation's economy grew by 5.4% year-on-year in the third quarter of 2026, slowing down from a 6.2% increase in the previous quarter, according to advance estimates from the Ministry of Energy, Trade and Industry (METI).

According to BERNAMA News Agency, on a quarter-on-quarter, seasonally adjusted basis, the economy saw a 1.1% expansion, easing from a 1.5% growth in the second quarter.

The manufacturing sector experienced a growth of 7.5% year-on-year in the third quarter, down from 12.9% in the earlier quarter. This growth was driven by increases in the electronics, precision engineering, transport engineering, and general manufacturing clusters, which offset declines in the chemicals and biomedical manufacturing sectors.

The construction sector showed an 8.8% year-on-year increase in the third quarter, accelerating from a 6.1% rise in the previous quarter, due to increased output in both public and private sector construction.

In the services sectors, wholesale and retail trade, along with transportation and storage, grew by 8.0% year-on-year, continuing the growth momentum from the 6.9% increase seen in the previous quarter. However, the sectors comprising information and communications, finance and insurance, and professional services grew by 4.3% year-on-year, a decrease from 5.1% growth in the second quarter.

The remaining services sectors, including accommodation and food services, real estate, administrative and support services, and other industries, recorded a 2.1% year-on-year growth, following a 2.4% increase in the preceding quarter, as reported by METI.