Baku: The Asian Development Bank (ADB) has maintained its economic growth forecast for Azerbaijan for the years 2026 and 2027, as per recent reports by APA-Economics. The bank anticipates Azerbaijan's economy to expand by 2% in the current year and 1.8% in 2027, consistent with its earlier forecast released in April.

According to Azeri-Press News Agency, the ADB's economic growth projections for Azerbaijan, alongside Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan, remain steady, showing no changes for the 2026-2027 period. However, forecasts for the Caucasus, Central, and West Asia region have been adjusted downward, now predicting growth at 3.8% for 2026 and 4.2% for 2027.

The revised forecast for 2026 is attributed to several factors, including worsening expectations in Armenia due to Russia's trade restrictions, weaker economic growth in Trkiye during the first quarter, and rising costs in Turkmenistan resulting from alternative trade routes bypassing Iran. Furthermore, Armenia's economic growth forecast has been adjusted to 5.5% for 2027, reflecting the long-term effects of the Middle East conflict and the negative impact of trade restrictions on the country's economic outlook.

Trkiye's forecast has also been revised downward, impacted by rising fuel and fertilizer prices, coupled with a weak external economic environment that has adversely affected its industry and exports.