Azerbaijan, Central Asia outpace advanced economies in latest growth figures

Figures on the economic performance of Azerbaijan, Kazakhstan, Uzbekistan, the Kyrgyz Republic and Tajikistan indicate that the group significantly outpaced advanced economies in terms of growth in 2025.

Data compiled from several independent sources place the cluster’s expansion last year between 6.2% and 6.6%, as highlighted by Euronews.

Although Azerbaijan is geographically located outside Central Asia and does not share a land border with the four countries, it is grouped with them because of tightly interconnected economies linked through energy routes and trade corridors connecting the region with Europe and global markets.

The region’s performance contrasts with much slower growth expected in advanced economies. The Eurasian Development Bank (EDB) forecasts expansion of around 1.6% for the United States and about 1.1% for the euro area in 2026, while China is projected to grow by roughly 4.6%.

Azerbaijan

According to the International Monetary Fund’s latest country forecasts, Azerbaijan’s GDP is expected to grow by about 3.0% in 2025, marking a slowdown from previous years. Despite the more moderate pace, Azerbaijan plays a central role in linking Central Asia to global markets, with energy revenues being channelled into infrastructure projects such as transport corridors across the Caspian Sea that connect Central Asia with Europe and Türkiye.

These routes have gained importance as trade flows between Asia and Europe have been reshaped in recent years, increasing Azerbaijan’s relevance as a transit and logistics hub for Central Asian exports, particularly hydrocarbons, metals and agricultural goods.

Central Asia

The Kyrgyz Republic emerged as the region’s fastest-growing economy, with GDP estimated to have expanded by 10.3% in 2025 and forecast at 9.3% in 2026, according to the EDB. 

Tajikistan also benefited from strong remittance inflows and sustained public investment, while analysts say part of the recent acceleration across the region reflects the redirection of trade and logistics flows following the outbreak of the war in Ukraine.

Kazakhstan, Central Asia’s largest economy, grew by about 5.9% in 2025 and is projected to expand by 5.5% in 2026, according to the EDB, marking one of its strongest performances in more than a decade.

Uzbekistan recorded one of the most robust results in the region, with GDP growth of 7.4% in 2025 and a projected 6.8% in 2026, according to the EDB. Persistently high global gold prices played a major role, with export revenues from the precious metal rising by more than 70% year on year, according to data from Uzbekistan’s statistics agency cited by the World Bank and the Eurasian Development Bank.

By Nazrin Sadigova