Moody's forecasts acceleration of GDP growth in Azerbaijan

International rating agency Moody's expects Azerbaijan's real GDP to be in the range of 2.5% to 3% in 2026-27, compared with an estimated 1.5% in 2025 and 4.1% in 2024, Report informs referring to the agency's Azerbaijan Banking System Outlook update.

Growth will again be driven by the solid performance of the non-oil sector, in which banks conduct most of their business, supporting credit growth, asset quality and profitability.

The agency previously forecast Azerbaijan's GDP growth at 3% in 2026 and 2.5% in 2027.

Economic growth will be supported by expanding capacity and activity in the transport and logistics sector, including key transport routes such as the Trans-Caspian International Transport Route; by reconstruction efforts in the Karabakh and East Zangazur regions; and by the government's push into renewables, which has drawn foreign investment into wind and solar projects.