The Asian Development Bank (ADB) has set its economic growth forecast for Azerbaijan at 2% for 2026 and 1.8% for 2027.
“Elchi” reports that this was stated in the Bank’s report.
It was noted that the slowdown in the growth rate compared to the previous year will occur against the backdrop of declining oil production.
ADB has forecasted that the country’s agricultural sector will grow by 1.4% in 2026 and 1% in 2027, while industrial production is expected to grow by 0.2% and 0.1%, respectively.
“The state budget deficit is expected to be 2.2% of GDP in 2026 and 2.1% in 2027. In 2026, transfers from the State Oil Fund of Azerbaijan (SOFAZ) will account for 9.3% of GDP. In addition, state budget expenditures will account for 30.3% of GDP, of which 10.2% will fall to the share of state capital investments,” ADB added.
According to the Asian Development Bank, the average annual inflation in Azerbaijan is projected to be 5.7% in 2026 and 4.9% in 2027.
The Bank has increased its estimates for 2026 by 2.2 percentage points compared to its forecast in September last year. The forecast presented for 2027 is new.
ADB added that inflation is projected to rise in 2026 against the backdrop of increasing import costs due to global hydrocarbon prices remaining high, and to decrease again in 2027.