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May 28, 2026IMF country report0 citationsOpen Access

The Republic of Azerbaijan

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IDInternational Monetary Fund. Middle East and Central Asia Dept.

Key Points

  • The aim is to analyze the economic conditions and challenges faced by Azerbaijan in 2025.
  • Assessment of economic growth trends and inflation rates
  • Evaluation of geopolitical impacts, particularly from the Middle East
  • Identification of fiscal challenges related to hydrocarbon reserves
  • Economic growth slowed in 2025 following elevated growth in 2024.
  • Inflation rose, spurred by food prices, but remained within the target band.
  • Economic diversification and fiscal consolidation are identified as main challenges.

Abstract

Economic momentum waned in 2025, coming off elevated growth in 2024. Inflation rose, driven by food prices, but remains within the target band. The war in the Middle East has heightened uncertainty, even as it potentially augments Azerbaijan's buffers. Addressing any inflationary pressures as well as—given falling hydrocarbon reserves—sustained fiscal consolidation and economic diversification are the main challenges.

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International Monetary Fund. Middle East and Central Asia Dept. (2026) studied this question.

synapsesocial.com/papers/6a17dcdf3fad632b0f9d9871https://doi.org/10.5089/9798229048446.002
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