Forecast: Azerbaijan's economy to grow by 2.5% in 2026

15:20 - 20.02.2026


February 20, Fineko/abc.az. Azerbaijan’s economy is projected to expand by 2.5% in 2026, ABC.AZ informs, referring to Fitch Solutions’ forecast about Azerbaijan.

The company estimates that following growth of around 1.4% in 2025, economic expansion is expected to accelerate in 2026. Growth is anticipated to be driven mainly by domestic demand amid easing inflation and a relatively healthy labor market.

The report states that the oil sector will continue to face challenges due to declining global oil prices and Azerbaijan’s heavy reliance on hydrocarbon revenues. Fiscal constraints remain a key risk factor.

Nevertheless, Fitch Solutions assesses the overall outlook for Azerbaijan’s economy as positive against the backdrop of rising regional investment and trade activity. The institution believes that a potential peace agreement with Armenia and the U.S. interest in establishing a transit corridor in the region could further support economic activity.