IMF projects Azerbaijan’s economy to grow 2.5% annually in the medium term

Azerbaijan’s gross domestic product is expected to grow by an average of 2.5% annually over the medium term, the International Monetary Fund said.

Cihad Azour, director of the IMF’s Middle East and Central Asia Department, told Report that growth in 2025 will slow to around 3% from this year’s pace as public investment in the hydrocarbon sector declines.

“Inflation remains under control and within the Central Bank’s target range,” Azour said.

He added that a narrowing trade surplus would affect the country’s external position. “Risks remain broadly balanced — among them potential declines in oil and gas prices or a rise in geopolitical tensions. Insufficient activity in the non-hydrocarbon sector could also weigh on growth,” Azour said.