Baku:The Asian Development Bank (ADB) has released its updated forecasts for Azerbaijan's macroeconomic indicators for the years 2026 to 2027.

According to Azeri-Press news agency, the ADB projects that Azerbaijan's GDP will grow by 1.6% in 2026 and by 1.8% in 2027. This marks a downward revision for 2026, where the bank had previously anticipated a 2% growth rate. The reduction is primarily attributed to a decline in production within the oil sector.

Despite the challenges in the oil sector, the report highlights that activity in Azerbaijan's non-oil sector remains robust. In terms of inflation, the ADB forecasts an average annual rate of 5.9% in 2026 and 5% in 2027. The bank explained that inflation expectations are shaped by the impact of hydrocarbon prices on domestic prices and adjustments in administered tariffs.