ADB Raises Azerbaijan's Economic Growth Forecast to 3.4%

The Asian Development Bank (ADB) has raised its economic growth forecast for Azerbaijan, predicting a 3.4% increase in GDP for 2025 and 3.3% for 2026, largely due to improved consumer lending which now represents 31% of banks' credit portfolios and supports household investments. Additionally, significant job growth is reported in Azerbaijan's liberated territories, with 2,575 new jobs created in 2024, reflecting efforts in economic revitalization following the 2020 conflict. The business environment is improving, as evidenced by a 2.6-fold increase in new enterprises registered in these regions. Azerbaijan's overall GDP rose by 4.1% in 2024, making it one of the leading economies in the region, driven by diversification and robust export demand. These developments highlight a positive trajectory for Azerbaijan's economy, despite challenges in the wider Caucasus and Central Asia region. The ADB notes that economic growth in these areas is expected to slow due to weak external demand.