IMF and ING Release Mixed Economic Forecasts for Azerbaijan
The IMF lowered Azerbaijan's growth projections while ING Group predicted a significant rise in the country's international reserves for 2026.
The International Monetary Fund and ING Group released updated economic forecasts for Azerbaijan on October 22, 2026, presenting a mixed outlook for the nation's financial future. The IMF lowered its economic growth projections to 1.7% for 2026 and 2.3% for 2027, attributing the slowdown to less stimulative fiscal policies and supply-side constraints within the oil sector.
Despite the growth downgrade, the IMF expects Azerbaijan's external economic position to strengthen in 2026, supported by prudent macroeconomic policies and higher oil export revenues. However, the organization warned that this position could weaken by 2027 as energy prices decline. The IMF also noted that weakening domestic demand has helped keep inflation relatively stable.
Parallel to these findings, ING Group projected that Azerbaijan's gross international reserves will increase by 36.8% to $18.6 billion in 2026. The financial services company indicated that higher oil prices are improving the external outlook and providing necessary support for the AZN peg.
