Baku: The international rating agency S and P Global Ratings has revised its economic growth forecast for Azerbaijan, projecting a more optimistic outlook for 2026, APA-Economics reports citing the rating agency.

According to Azeri-Press News Agency, S and P Global Ratings has maintained its forecast for Azerbaijan’s real GDP growth at 2% for 2025 but has raised its expectations for 2026 from 1.5% to 2%. The agency highlighted that actual GDP growth in the Caucasus and Central Asia region in 2024 surpassed its initial forecasts. Although high expectations persist for 2025, the growth is predicted to be lower than in 2024.

The rating agency pointed out that oil-producing countries such as Kazakhstan and Azerbaijan have gained from recent oil price dynamics but are experiencing a decline in oil production. However, growth in non-oil sectors in these countries is outpacing that of the oil and gas sector. The agency also noted a slowdown in economic growth in Armenia and Georgia, attributing this trend to reduced migrant and capital flows from Russia.