BAKU, Azerbaijan, July 16. The Central Bank of
Azerbaijan (CBA) and the International Monetary Fund (IMF)
discussed inflation and monetary policy priorities.
This was reflected in the statement by the Central Bank of
Azerbaijan, following a meeting between the bank’s Director
General, Vugar Ahmadov, and Anna Bordon, the head of the IMF’s
mission to Azerbaijan, who is currently visiting Azerbaijan.
''During the meeting, the sides discussed the impact of
developments in the global economy and financial markets on
Azerbaijan’s economy, macroeconomic and financial stability, as
well as economic trends and inflation forecasts,'' the CBA
says.
The CBA notes that the parties also exchanged views on improving
the monetary policy transmission mechanism and developing the
interbank market, and discussed the main priorities of monetary
policy and financial stability policy for the current year and the
medium term.
According to the IMF’s May report, Azerbaijan’s economy is
expected to grow by 2.2% in 2026, with growth stabilizing at 2.5%
annually from 2027 through 2031.
In addition, the report emphasizes that the country’s oil
sector, including oil and gas production and refining, will
contract by 2% in 2026. According to the fund, the rate of decline
will subsequently slow to 0.5% annually from 2027 to 2031.
At the same time, the IMF forecasts non-oil GDP growth of 3.7%
in 2026 and 3.8% in 2027, followed by stabilization at 3.5%
annually from 2028 to 2031.
The IMF also forecasts steady growth in Azerbaijan’s nominal GDP
in the coming years. Nominal GDP is expected to reach $78.3 billion
in 2026, increase to $83.06 billion in 2027, $88.1 billion in 2028,
$93.7 billion in 2029, and $99.6 billion in 2030, reaching $105.9
billion in 2031.
