ADB maintains Azerbaijan's economic growth forecast at 2% for 2026

The Asian Development Bank has maintained its economic growth forecast for Azerbaijan, projecting the country's economy to expand by 2% in 2026 and 1.8% in 2027, unchanged from its April outlook, AzerNEWS reports.

According to the ADB's July forecast, growth projections for Azerbaijan, as well as Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan, were left unchanged for both 2026 and 2027.

The bank, however, lowered its overall growth forecast for the Caucasus, Central and West Asia region to 3.8% in 2026 and 4.2% in 2027.

According to the ADB, the downward revision for 2026 reflects weaker economic prospects in Armenia due to recent Russian trade restrictions, slower-than-expected economic growth in Türkiye during the first quarter, and higher costs in Turkmenistan linked to the use of alternative trade routes bypassing Iran.

The bank also lowered Armenia's 2027 growth forecast to 5.5%, citing the longer-term economic effects of the conflict in the Middle East and the negative impact of trade restrictions.