The European Bank for Reconstruction and Development (EBRD) has forecast economic growth of 2% in Azerbaijan in 2026 and 2.5% in 2027, APA-Economics reports.
The Bank has kept its September forecasts for Azerbaijan’s gross domestic product (GDP) growth unchanged.
The EBRD noted that after the slowdown observed at the beginning of the year, Azerbaijan’s economy has returned to moderate growth, mainly supported by the non-oil sector.
The report said the ongoing armed conflict in the Middle East has negatively affected economic growth expectations for Eastern European and Caucasus countries. The region’s growth forecast for 2026 was lowered by 0.3 percentage points to 2.5%, while the forecast for 2027 was cut by 0.8 percentage points to 4.1%.
According to EBRD analysts, Azerbaijan’s economic outlook remains largely dependent on changes in global hydrocarbon prices and production volumes.
The Bank believes that progress in the peace process with Armenia, the implementation of new regional connectivity projects, and investments in the renewable energy sector could create additional opportunities for economic diversification over the medium term.
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