EBRD raises forecast for Azerbaijan's GDP growth in 2025 to 3%

BAKU. Feb 27 (Interfax) - The European Bank for Reconstruction and Development (EBRD) has raised its GDP growth forecast for Azerbaijan in 2025 to 3%, according to the February edition of the bank's Regional Economic Prospects report.

The growth forecast was 2.7% in the previous report released in September.

It also raised the estimate for the country's GDP growth for 2026 by 0.3 percentage points to 2.5%.

"Azerbaijan's economy grew strongly in 2024, driven by the non-oil sector and public investment. Real GDP expanded by 4.1% in 2024, up from 1.1% in 2023, with non-oil growth reaching 6.2%, compared with 3.7% in 2023," the report said.

Azerbaijan's economy remains sensitive to fluctuations in oil and gas prices as well as geopolitical tensions in the region, the EBRD said. "In the medium term, trade along the Middle Corridor connecting China to Europe could create opportunities for Azerbaijan's transport and logistics sectors, while public consumption is expected to benefit from government investments in infrastructure, agriculture, and defence," it said.

The Azerbaijani government expects GDP growth of 3.5% in 2025 and 2.8% in 2026.