WB: Azerbaijan's economy will grow by an average of 1.8% in 2025-2027

The World Bank (WB) forecasts Azerbaijan's economic growth at 1.9% in 2025, 1.8% in 2026, and 1.7% in 2027.

As Report informs with reference to the updated WB figures, compared to the June forecast for 2025, GDP growth rates have been reduced: by 0.7 percentage points for the current year, by 0.6 percentage points for 2026, and also by 0.6 percentage points for 2027.

On average, Azerbaijan's GDP growth in 2025-2027 is forecasted at 1.8%.

According to the document, in Central Asia, economic growth is likely to accelerate to 5.9% in 2025 from 5.7% a year earlier, supported by increased oil production in Kazakhstan, sustainable investments, and high volumes of remittances.

In the South Caucasus countries, conversely, growth is expected to slow to 3.7% in 2025 from 5.7% in 2024. The World Bank predicts that in 2026-2027, economic growth in the South Caucasus will slow to just over 3%.

The report's authors note that in the oil-exporting countries of the Europe and Central Asia region, trade flows are affected by falling global energy prices and declining global demand.

"Overall, energy exports account for about 85% of all goods exports from Azerbaijan and more than 50% from Kazakhstan and Russia," the report states.

According to the forecast of Azerbaijan's Ministry of Economy, GDP growth is expected at 3% in 2025, 2.9% in 2026, and 3.6% in 2027.

International rating agencies' forecasts vary: S&P Global expects growth in 2025-2026 at 2% per year, Fitch Ratings - 3.5% in 2025 and 2.5% in 2026, Moody's - 2.5% per year.

The International Monetary Fund forecasts growth of 3.5% and 2.5% respectively for 2025-2026, while the European Bank for Reconstruction and Development forecasts 3% in 2025 and 2.5% in 2026. The Asian Development Bank forecasts growth in the next two years at 2.4% and 2% respectively, while the largest Dutch banking group ING Group forecasts Azerbaijan's economic growth at 1.5% in 2025 and 2.8% in 2026.

In 2024, Azerbaijan's economy grew by 4.1%, and in January-August 2025, it grew by 1%.