12:38 - 13.02.2026

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February 13, Fineko/abc.az. - (special news) - Prices have been rising rapidly in Azerbaijan for many years. Often, the cost of goods in our country even exceeds the figures of some European countries.

For example, in a video posted recently by an Azerbaijani blogger living in Poland, it is clearly visible that food in Warsaw is several times cheaper than in Baku.

What are the main reasons for this difference?

We have addressed this question to the chairman of the Azerbaijan Society of Appraisers, Vugar Oruj.

In an interview with ABC.AZ our interlocutor noted that Poland switched to market relations much earlier than Azerbaijan, and this process was in the nature of a direct transformation, unlike our regulated economy model.

He underlined that the transition to capitalism in Poland took place rapidly; reforms were carried out, as a result of which a self-regulating market mechanism was formed:

"Azerbaijan has a regulated market economy. As you know, the exchange rate of the manat against foreign currencies is stable. We did not choose the path of direct and drastic transformation at the time, preferring a phased transition, and for this reason, there is still no free (floating) exchange rate in Azerbaijan. I'm saying this because we have different types of economies. Poland has a free market economy. At the same time, the main flour products, in particular bread, are about 35-50% more expensive there than in Azerbaijan. Vegetables and fruits are 1.2–1.5-fold more expensive than ours. That is, there are serious differences in wholesale prices."

However, according to the expert, despite the fact that local products in Azerbaijan are cheaper than Polish ones, logistics costs and imported components play a special role in the structure of their cost and market launch. They are the ones who make the final product more expensive than in Poland.

"The logistical costs of Poland in trade with neighboring countries are minimal. Azerbaijan incurs huge transportation costs to deliver products to the domestic market. As for the currency: today the official exchange rate is approximately 2.1 Polish zloty per 1 manat. Despite this, the Polish zloty has much higher convertibility and is a sought-after currency in many European markets. Meanwhile, the Azerbaijani manat remains the priority currency for the states of the region. As I mentioned, there are differences in systems and mechanisms between the two countries. I believe that for a more objective comparison of the economies, it is advisable that the economic systems of both countries be the same. In other words, if Azerbaijan ever switches to a free exchange rate system and implements integration, country's economy will face a crisis in the short term. But if it can overcome this crisis with its own resources and ongoing reforms, the next stage will have better opportunities to compare with the Polish economy.

The fact that a particular product is cheaper at the Polish market does not mean that the Polish market is more developed and prices there are low. Similarly, the fact that many goods are cheaper in Azerbaijan does not indicate that Azerbaijan's economy is stronger than Poland's.

In any case, the Polish economy is more integrated into the European economy and has a number of benefits. Azerbaijan needs to go through a certain period in order to receive these benefits, strengthen the economy and the position of the national currency.

By Elmir Murad