Baku: Azerbaijan is set to enhance its external and fiscal indicators this year, capitalizing on elevated oil prices, as projected by international financial group ING.

According to Azeri-Press News Agency, Azerbaijan is among the countries expected to gain significantly from the heightened oil prices, particularly in light of the ongoing geopolitical tensions in the Middle East and the risks surrounding the Strait of Hormuz. ING has adjusted its oil price forecast for 2026 to 93 US dollars per barrel, which is anticipated to positively impact Azerbaijan's economy.

Under the new oil price scenario, Azerbaijan's current account surplus could potentially reach 9-10% of GDP this year. Additionally, the consolidated budget surplus is projected to increase to 4% of GDP. Despite facing imported inflation risks, Azerbaijan's domestic inflationary pressures are reported to be less intense compared to other Commonwealth of Independent States (CIS) countries, primarily due to a lower level of economic growth.

ING highlights that Azerbaijan's gross domestic product saw a decrease of 0.3% year-on-year in the first quarter of 2026. The economic growth for the nation is expected to persist at a low single-digit level for the remainder of the year.