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IMF unveils macroeconomic forecasts for Azerbaijan

22 October 2026 10:46 (UTC +04:00)

The International Monetary Fund (IMF) has announced its economic growth forecasts for Azerbaijan for 2026 and 2027, APA-Economics reports.

This was stated in the Fund's report published in October 2026.

According to the new forecast, Azerbaijan's economy is expected to grow by 1.7% in 2026 and 2.3% in 2027.

In the IMF's April forecast, these figures stood at 2.2% and 2.5%, respectively. Thus, the Fund has lowered its economic growth forecast for the current year by 0.5 percentage points and for 2027 by 0.2 percentage points.

The report attributes the downward revisions to factors limiting production in the oil sector, as well as a less stimulative fiscal policy in Azerbaijan.

The IMF expects Azerbaijan's economy to grow by 2.5% in 2028. This figure remains unchanged compared to the previous forecast.

As for inflation, according to the Fund's assessment, price increases in Azerbaijan remained relatively stable in 2026. This is explained by weakening inflationary pressures stemming from domestic demand.

The IMF notes that inflation dynamics in the Caucasus and Central Asia region vary across countries. While rising energy prices accelerated inflation in Georgia, the slowdown in price increases continued in Kazakhstan and Uzbekistan.

According to the Fund's forecast, inflation in the Caucasus and Central Asia region is expected to reach 8% in 2026 and 6.7% in 2027.