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Finance

IMF releases forecasts for Azerbaijan's economy

13 October 2026 09:00 (UTC +04:00)

The International Monetary Fund (IMF) forecasts that Azerbaijan's economy will grow by 1.7% in 2026 and 2.3% in 2027, APA-Economics reports.

According to the Fund's report, the IMF has lowered its expectations for Azerbaijan's gross domestic product (GDP) growth by 0.5 percentage points for 2026 and 0.2 percentage points for 2027 compared to the forecasts released in May.

Thus, the Fund estimates the average annual growth rate of Azerbaijan's economy at 2% in 2026–2027.

The IMF expects average annual inflation in Azerbaijan to reach 5.8% in 2026 and 5.6% in 2027.

Compared to its previous forecasts, the inflation projection for 2026 has been reduced by 0.2 percentage points, while the forecast for 2027 has been raised by 1.4 percentage points. In May, the Fund projected inflation in Azerbaijan at 6% and 4.2%, respectively.

The report also includes forecasts for the labor market. According to the IMF's estimates, Azerbaijan's unemployment rate will stand at 5.3% in 2026, unchanged from the 2025 figure. Unemployment is expected to decline to 5.2% in 2027.