World Bank ups Azerbaijan's 2025 growth forecast to 2.7%

The World Bank has revised its economic growth forecast for Azerbaijan, increasing the projection for 2025 to 2.7%, up by 0.3 percentage points from its June estimate, according to the January edition of the "Global Economic Prospects" report.

The bank’s analysts also forecast 2.4% economic growth for Azerbaijan in 2026, indicating steady, albeit moderate, expansion, Caliber.Az reports.

Azerbaijan's economy outperformed expectations in 2024, achieving a 4% growth rate, which was 1.7 percentage points higher than the World Bank's earlier forecast.

The stronger-than-expected performance highlights resilience in Azerbaijan's economic framework despite global uncertainties.

The revised forecast reflects improved confidence in Azerbaijan's growth trajectory as the country continues to adapt to evolving global and regional economic conditions.

Economic growth across the South Caucasus is projected to stabilize at around 3.5% annually from 2024 to 2026, according to the World Bank's latest report. A partial recovery in Azerbaijan's hydrocarbon exports, which experienced a sharp decline in 2023, is expected to contribute significantly to this stabilization. This recovery may also help offset the slowdown following recent periods of robust growth in Armenia and Georgia.

The report highlights the ongoing impact of the conflict in Ukraine, which continues to influence trade dynamics and economic activity across the region.

Azerbaijan, a World Bank member since September 1992, has benefited from over three decades of support, receiving more than $4.5 billion through 50 investment projects. The partnership reflects the World Bank's sustained commitment to advancing economic resilience and development in the country.

By Aghakazim Guliyev