Baku: Azerbaijan will support economic growth through budget expenditures in 2025, as per APA-Economics reports, citing the International Monetary Fund (IMF). It was noted that Azerbaijan will implement an expansionary budget policy in 2025, focusing on stimulating economic growth through government spending.
According to Azeri-Press News Agency, the IMF’s forecast indicates that from 2026, the Azerbaijani government plans to reduce expenditures and tighten fiscal policy. This shift is primarily associated with a decrease in capital expenditures, particularly in infrastructure and public investments.
The report highlights that in the Caucasus and Central Asia (CCA) region, including Azerbaijan, fiscal policy is expected to be expansionary in 2025 but will adopt a contractionary nature starting from 2026. This anticipated change is linked to reduced capital expenditures in Azerbaijan, alongside reforms in Kazakhstan aimed at boosting non-oil revenues.
The IMF’s assessment suggests that supporting economic activity through budget expenditures in 2025, followed by a transition to budget consolidation, will enhance fiscal stability and boost the sustainability of public finances in Azerbaijan. The IMF projects a real GDP growth of 3% for Azerbaijan in 2025, with a slight decrease to 2.5% projected for 2026 and 2030.