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IMF: Azerbaijan will support economic growth through budget spending this year

21 October 2025 11:09 (UTC +04:00)

“Azerbaijan will support economic growth through budget expenditures in 2025,” APA-Economics reports, citing the International Monetary Fund (IMF).

It was noted that Azerbaijan will implement an expansionary budget policy in 2025 and support economic growth through government expenditures.

Based on the IMF’s forecast, starting from 2026, the government will reduce expenditures and tighten fiscal policy. This change is mainly related to a decrease in capital expenditures (infrastructure and public investments).

The report states that in the Caucasus and Central Asia (CCA) region, including Azerbaijan, fiscal policy will be expansionary in 2025 but will take on a contractionary character starting from 2026: “Although fiscal policy in the CCA countries will be generally expansionary in 2025, it will contract from 2026 onwards. This change is related to a decrease in capital expenditures in Azerbaijan and reforms aimed at increasing non-oil revenues in Kazakhstan.”

According to the IMF’s assessment, the support of economic activity by budget expenditures in 2025, then a transition to budget consolidation, will strengthen fiscal stability and increase the sustainability of public finances in the country.

Note that the IMF has projected real GDP growth of 3% for 2025, and 2.5% for 2026 and 2030.