Fitch forecasts Azerbaijan’s economy to grow 2% in 2026

International rating agency Fitch Ratings expects Azerbaijan’s economy to expand by 2% in 2026.

According to the agency, real GDP growth is set to accelerate moderately this year following the performance recorded in 2025.

Fitch said the impact of higher energy prices would be offset by prudent fiscal policy and moderate lending growth. The agency also noted that the structural decline in oil production remains one of the main medium-term challenges to economic growth.

Fitch forecasts average annual inflation in Azerbaijan to rise to 6.1% in 2026, with higher logistics costs, food prices and regulated tariffs expected to add upward pressure on consumer prices.

N. Tebrizli