11:29 - 9.07.2026

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July 9, Fineko/abc.az. Economic growth in Azerbaijan is expected to reach 2% in 2026.

Wael Mansour, the WB Lead Economist for the South Caucasus, made the relevant statement during the presentation of report «Azerbaijan Country Economic Memorandum – Spring 2026» in Baku.

He added that economic growth in 2026 will accelerate due to stabilization in the oil sector and the gradual recovery of non-oil consumption.

Mansour stated that the WB forecasts average annual inflation of 5.8% in 2026. This is mainly due to the impact of global energy and transportation costs. Nevertheless, inflation is expected to decline again to around 4% in 2027 and 2028.

He noted that economic growth is projected to average 1.8% in 2027 and 2028. According to the WB, medium-term fiscal consolidation will have a certain impact on domestic demand.

The chief economist stressed that the government will continue its prudent macroeconomic policy. Although oil prices are expected to temporarily increase the budget and external sector surpluses in 2026, the medium-term fiscal framework is aimed at preserving the sustainability of public finances.

According to Mansour, the government's goal is to increase the share of non-oil revenues in total budget revenues to 61% by 2029. The WB believes that this approach will strengthen market confidence, improve the risk environment, and create more favorable conditions for lending and foreign direct investments.