By AZE.US
BAKU — The Asian Development Bank has cut its forecast for Azerbaijan’s economic growth in 2026 by 0.4 percentage points to 1.6%, while raising its inflation estimate to 5.9%.
The revision reflects expectations of weak growth through the end of the year, according to the bank’s latest outlook cited by Vesti Baku. The ADB left its 2027 gross domestic product forecast unchanged at 1.8%.
The bank expects Azerbaijan’s economy to grow by an average of 1.7% over the two years. By comparison, the Economy Ministry projects growth of 1.7% in 2026 and 2.7% in 2027, while the Central Bank forecasts 0.5% and 2.6%, respectively.
The ADB raised its 2026 inflation forecast by 0.2 percentage points to 5.9% and lifted its 2027 estimate by 0.1 point to 5%. It attributed the revisions to the continuing effect of hydrocarbon prices and faster consumer-price growth in the second half of the year. Azerbaijan’s average inflation rate was 5.7% in January-August.
The bank expects the Central Bank’s policy rate to remain stable in 2026. The rate currently stands at 6.5%. A moderate increase could follow in 2027 depending on foreign-exchange market conditions and inflation risks.
The projections were published in a new ADB review and reported by Report.
AZE.US