IMF trims Azerbaijan’s GDP growth forecast

The International Monetary Fund (IMF) forecasts Azerbaijan’s economy to expand by 1.7% in 2026 and 2.3% in 2027, according to its latest economic outlook.

Relative to its May estimates, the Fund revised down GDP growth expectations by 0.5 percentage points for 2026 and by 0.2 percentage points for 2027, bringing the projected average annual growth rate across 2026–2027 to 2%.

The IMF projects average annual inflation in Azerbaijan at 5.8% for 2026 and 5.6% for 2027, reflecting a 0.2 percentage point downward revision for the current year and a 1.4 percentage point upward adjustment for 2027 against prior baseline forecasts. On the labor front, the Fund estimates the nationwide unemployment rate will remain flat at 5.3% in 2026 before easing slightly to 5.2% in 2027.

N.Tebrizli