S&P Global projects 2% GDP growth for Azerbaijan in 2025

S&P Global international rating agency expects Azerbaijan’s GDP growth to remain at 2 per cent in 2025.

The agency has also raised its GDP growth forecast for 2026 from 1.5 per cent to 2 per cent, Caliber.Az reports via local media.

The report highlights that the GDP of the Caucasus and Central Asia region surpassed the agency's forecasts in 2024. While GDP growth projections for 2025 remain positive, they are expected to be lower than those of 2024.

Azerbaijan's Ministry of Economy predicts a 3.5 per cent economic growth for the country this year, while the Central Bank expects a 3.3 per cent growth in 2025. 

According to Moody’s international rating agency, Azerbaijan's real GDP growth in 2025 will reach 4 per cent. Fitch Ratings forecasts a 3 per cent increase in GDP in 2025, followed by a 2.4 per cent rise in 2026. Dutch bank ING expects the country’s economy to grow by 2.6 per cent this year and 2.8 per cent next year. In 2024, Azerbaijan's economy grew by 4.1 per cent. 

Earlier, S&P Global Ratings affirmed Azerbaijan’s 'BB+/B' long- and short-term foreign and local currency sovereign credit ratings, maintaining a stable outlook for the country. In a notable update, the international rating agency has revised its forecast for Azerbaijan's GDP growth in 2024 to 4.5 per cent, a significant improvement from the 2.5 per cent projection made in June. 

According to the agency, Azerbaijan's GDP growth rate in the first ten months of 2024 exceeded expectations, reaching 4.9 per cent. As a result, S&P now expects the country’s nominal GDP to reach 126 billion manats (approximately $74 billion) by the end of the year.

By Naila Huseynova