Day: April 9, 2025

In its latest assessment, the Asian Development Bank (ADB) has painted a cautiously optimistic picture of Azerbaijan’s economic trajectory, with falling inflation, a manageable budget deficit, and opportunities for private sector-led green growth—provided crucial reforms are implemented.

According to ADB forecasts, Azerbaijan’s inflation rate, which dropped significantly from 8.8% in 2023 to 2.2% in 2024, is expected to inch upward to 4.2% in 2025 before stabilizing at 3.5% in 2026. The sharp decline in 2024 was largely driven by falling prices in key consumer categories, particularly food, which saw inflation fall from 9.6% to just 1.3%. Similar drops were noted in non-food goods (from 8.4% to 1.6%) and services (from 8.2% to 4.0%).