Baku: GDP growth in Azerbaijan is projected to reach 2.1% in 2026, as stated by IMF Advisor and Head of the Article IV Mission to Azerbaijan, Anna Bordon, according to APA-Economics reports. Bordon highlighted that this growth will occur amidst ongoing challenges in the oil and gas sector, alongside an anticipated increase in the non-oil sector, with growth expected to stabilize at approximately 2.5% over the medium term.

According to Azeri-Press News Agency, inflation in Azerbaijan is forecasted to decrease to 5.0% by the end of 2026 and further to 4.0% by the end of 2027. The IMF also noted that Azerbaijan's external position will weaken due to declining oil production, which will narrow trade surpluses. However, the current account balance is anticipated to remain positive throughout 2026-27. While risks are considered broadly balanced, there remains significant external uncertainty.