The Asian Development Bank (ADB) has set its forecast for Azerbaijan’s economic growth at 2% for 2026 and 1.8% for 2027.

Axar.az informs, citing AРA, that according to the Bank’s report, a slowdown in growth compared to the previous year will occur against the backdrop of declining oil production.

ADB forecasts that the agricultural sector in the country will grow by 1.4% in 2026 and 1% in 2027, while industrial production will increase by 0.2% and 0.1%, respectively.

“The state budget deficit is expected to be 2.2% of GDP in 2026 and 2.1% in 2027. In 2026, transfers from the State Oil Fund of Azerbaijan (SOFAZ) will amount to 9.3% of GDP. At the same time, state budget expenditures will account for 30.3% of GDP, of which 10.2% will be allocated to public capital investments,” ADB added.

According to the Asian Development Bank (ADB), average annual inflation in Azerbaijan is projected to be 5.7% in 2026 and 4.9% in 2027.

Compared to its forecast from September last year, the Bank has increased its estimate for 2026 by 2.2 percentage points. The forecast presented for 2027 is new.

ADB added that inflation is expected to rise in 2026 amid increasing import costs due to persistently high global hydrocarbon prices, and to decline again in 2027.