The Republic of Azerbaijan: Staff Report for the 2026 Article IV Consultation

Author: International Monetary Fund. Middle East and Central Asia Dept., International Monetary Fund. Strategy, Policy, and & Review Department

The Republic of Azerbaijan : Staff Report for the 2026 Article IV Consultation

Volume/Issue: Volume 2026 Issue 112

Publication date: May 2026

ISBN: 9798229048446

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Topics covered in this book

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Banks and Banking , Inflation , Economics- Macroeconomics , Inflation , Oil , Central bank policy rate , Fiscal consolidation

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Summary

Economic momentum waned in 2025, coming off elevated growth in 2024. Inflation rose, driven by food prices, but remains within the target band. The war in the Middle East has heightened uncertainty, even as it potentially augments Azerbaijan's buffers. Addressing any inflationary pressures as well as—given falling hydrocarbon reserves—sustained fiscal consolidation and economic diversification are the main challenges.