Baku: The International Monetary Fund (IMF) has improved its economic growth forecasts for the Middle East and Central Asia region, which includes Azerbaijan, APA-Economics reports. In its report on the global economy, the IMF increased its forecast for the region’s gross domestic product (GDP) growth by 0.5 percentage points to 3.4% for 2025. Similarly, the forecast for 2026 was raised by the same amount, reaching 3.5%.
According to Azeri-Press News Agency, this upward revision is attributed to several factors, such as the anticipated revival in international trade, suspension of certain tariffs between the United States and China, and the easing of global financial conditions. Additionally, the recent weakening of the US dollar has provided emerging markets with more flexibility in their monetary policies.
The report also indicates that the price of energy products, including oil, is projected to decrease by approximately 7% in 2025, which could impact income for energy-exporting countries. Despite these positive forecasts, the IMF warns of potential risks that could influence regional economic growth. Specifically, uncertainties in trade policy, US tariff decisions, and geopolitical tensions, such as the Iran-Israeli conflict and issues related to Ukraine, could contribute to negative economic scenarios.