15:49 - 29.10.2025

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October 29, Fineko/abc.az. By the end of June, inflation decreased slightly as internal and external pressures eased, and annual inflation dropped to 4.8%.

ABC.AZ reports, referring to World Bank's first periodic Azerbaijan Country Economic Review.

This indicator is close to the central point of the target range of the Central Bank of Azerbaijan (4 ± 2%).

The external and fiscal balances have significant surpluses, despite the fact that the decline in oil and gas revenues has somewhat weakened these indicators. Macroeconomic reserves remain strong: the reserves of the State Oil Fund (SOFAZ) increased by 13.2% and reached $65 bn (88% of GDP), while the reserves of the Central Bank of Azerbaijan increased to $11.5 bn, equivalent to 5.6 months of imports.

In the long term, economic growth is projected to remain at an average of 1.7% between 2025 and 2027. It is linked with tightening of fiscal policy amid lower oil prices. Inflation is expected to remain within Central Bank's target range. Risks include long-term low growth and a sharper decline in energy prices. Although there are sufficient reserves against short-term risks, long-term sustainability will depend on the success of efforts to diversify the economy through structural reforms.

By Elmir Murad