Baku:The International Monetary Fund (IMF) has adjusted its economic growth forecasts for Azerbaijan for the years 2026 and 2027. The announcement was made as part of the Fund’s report released in October 2026.
According to Azeri-Press news agency, the IMF now predicts that Azerbaijan’s economy will grow by 1.7% in 2026 and 2.3% in 2027. These figures represent a decrease from the previous forecast made in April, which projected growth rates of 2.2% and 2.5%, respectively. The report cites limitations in oil sector production and a less stimulative fiscal policy as reasons for the downward revisions.
Looking forward, the IMF expects Azerbaijan’s economy to grow by 2.5% in 2028, a forecast that remains unchanged from earlier predictions. In terms of inflation, the Fund reported that price increases in Azerbaijan have remained relatively stable in 2026 due to weakening inflationary pressures from domestic demand.
Furthermore, the IMF noted that inflation trends differ across the Caucasus and Central Asia. Rising energy prices have accelerated inflation in Georgia, while Kazakhstan and Uzbekistan have experienced a slowdown in price increases. The IMF forecasts that regional inflation will reach 8% in 2026 and 6.7% in 2027.