BAKU, Azerbaijan, May 13. The European Bank for Reconstruction and Development (EBRD) has maintained its forecasts for Azerbaijan’s GDP growth since the February issue of its Regional Economic Prospects report, Trend reports.
In May edition of the outlook, the EBRD expects Azerbaijan’s GDP to grow by 3 percent in 2025, before dropping to 2.5 percent in 2026.
This is while, this figure stood at 1.4 percent in 2023 and 4.1 percent in 2024.
“Azerbaijan’s economy grew strongly in 2024, driven by the non-oil sector and public investment. Real GDP expanded by 4.1 per cent in 2024, up from 1.4 per cent in 2023, with non-oil growth reaching 6.2 per cent, compared with 3.7 per cent in 2023. The main non-oil contributors to growth were the construction, ICT, transportation, and tourism sectors. Economic activity was supported by rising real incomes and infrastructure investment, while the oil and gas sector returned to growth in March 2024, as gas production expanded to meet European demand. In the first quarter of 2025, real GDP grew by just 0.3 per cent year on year, compared with 4 per cent in the same period of 2024, as weaker oil and gas sector output offset solid momentum in the nonoil sector,” reads the report.
Meanwhile, EBRD notes that inflation remained contained, fluctuating between 0 per cent year on year in April 2024 (the lowest level in more than nine years) and 5.9 per cent in March 2025. The recent acceleration was driven by food and services prices, but inflation remains within the target range of the Central Bank of Azerbaijan (CBAR) of 4 per cent (±2 per cent).