Baku: Asian Development Bank (ADB) forecasts economic growth in Azerbaijan at 2.4% in 2025 and 2% in 2026, APA-Economics reports, citing the ADB.
According to Azeri-Press News Agency, compared to the Bank’s April forecast, the 2025 projection has been revised down by 1 percentage point, and the 2026 forecast is 1.3 percentage points lower.
“Declining hydrocarbon production slowed Azerbaijan’s economic growth in the first half of 2025. Although the economy expanded by 4.3% during the same period in 2024, the growth rate dropped to 1.5% in 2025. The main reason was a 3.1% contraction in the hydrocarbon sector, despite a 3.9% increase in the non-oil economy. Oil production declined by 5.3%, and gas production fell by 0.4%, leading to a 0.5% year-on-year decrease in industrial output during the first six months of this year. Meanwhile, the construction sector grew by 8.5% due to increased public investment in infrastructure rehabilitation projects. Growth in the services sector almost halved, mainly due to the
slow development of transport and communications – from 6.1% in the first half of 2024 to 3.1% in 2025. At the same time, agriculture accelerated – growth reached 1.4% compared to just 0.2% a year earlier, driven by increased agricultural production,” the ADB forecast added.
The ADB believes that moderate economic growth will continue until the end of 2026.