The International Monetary Fund (IMF) projects that Azerbaijan’s GDP will grow by 1.7% in 2026 and 2.3% in 2027.
According to Report, citing the IMF’s October outlook, the Fund has lowered 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.
Based on the updated estimates, Azerbaijan’s economy is expected to grow by an average of 2% annually over the next two years.
The IMF now forecasts average annual inflation in Azerbaijan at 5.8% in 2026 and 5.6% in 2027. By comparison, its spring projections had put inflation at 6% in 2026 and 4.2% in 2027.
The Fund’s experts also assessed labor market trends, projecting that Azerbaijan’s unemployment rate will remain at 5.3% in 2026, unchanged from 2025, before easing to 5.2% in 2027.
Azerbaijan’s Ministry of Economy expects GDP growth of 1.7% this year and 2.7% next year. Meanwhile, the Central Bank of Azerbaijan (CBA) forecasts economic growth of 0.5% in 2026 and 2.6% in 2027.
According to the Ministry of Economy, average annual inflation will stand at 5.7% in 2026 and 5.3% in 2027. The CBA’s July forecast, meanwhile, projected inflation of 6.1% in 2026 and 5.8% in 2027.