IMF forecasts Azerbaijan’s GDP growth at 1.7% in 2026 and 2.3% in 2027

The International Monetary Fund (IMF) expects Azerbaijan’s gross domestic product (GDP) to grow by 1.7% in 2026 and 2.3% in 2027, according to the fund’s October World Economic Outlook report, titled Resilience Under Pressure: Uncertainty, Urgency, and Opportunity.

The report reads that the fund had downgraded its GDP growth forecasts for Azerbaijan by 0.5 percentage points for 2026 and 0.2 percentage points for 2027 compared with its May projections.

According to the updated estimates, Azerbaijan’s economy is expected to grow by an average of approximately 2% annually over the next two years.

The IMF also forecasts average annual inflation of 5.8% in 2026 and 5.6% in 2027. In its spring projections, the fund had expected inflation to reach 6% in 2026 and 4.2% in 2027.

Regarding the labour market, the IMF projects Azerbaijan’s unemployment rate at 5.3% in 2026, unchanged from 2025, before declining to 5.2% in 2027.

Azerbaijan’s Ministry of Economy expects GDP growth of 1.7% in 2026 and 2.7% in 2027. The Central Bank of Azerbaijan, meanwhile, forecasts economic growth of 0.5% and 2.6%, respectively.

The Ministry of Economy projects average annual inflation of 5.7% in 2026 and 5.3% in 2027. In its July forecast, the central bank estimated inflation at 6.1% for 2026 and 5.8% for 2027.

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• Azerbaijan
• IMF
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