The World Bank has revised its economic growth forecasts for Azerbaijan, Armenia and Georgia.

Axar.az reports that World Bank experts have raised their growth projections for Armenia. According to their estimates, the Armenian economy will grow by 5.6% this year, 5.3% in 2027 and 5.1% in 2028.

Overall, the services sector remains the main driver of economic growth in the South Caucasus, while Armenia’s economic expansion is linked to a strong increase in housing and infrastructure construction.

World Bank experts have lowered their previously announced growth forecasts for Azerbaijan. The country’s economy is expected to grow by 1.2% in 2026, 1.8% in 2027 and 1.9% in 2028.

This is attributed to the continued structural decline in the oil sector and reduced public capital spending amid weaker-than-expected growth in the non-oil sector.

Georgia will maintain the highest economic growth rate in the South Caucasus this year, at nearly 7%. The World Bank expects the Georgian economy to grow by 5.5% in 2027 and 5% in 2028.