Global Economic Outlook
The global economy is expected to grow at a rate of 3.2 percent in 2025 and 2026, according to the International Monetary Fund’s (IMF) April Report. This growth rate is lower than the 3.3 percent growth recorded in 2024 and the historical average of 3.7 percent during 2000-2019.
Inflation Forecast
The global inflation forecast for 2025 remains unchanged at 4.2 percent. In 2026, this indicator is projected to rise by 0.1 percentage points to reach 4.3 percent. These projections indicate a relatively stable inflation rate, but with a slight increase in the coming year.
Azerbaijan’s Economic Performance
Azerbaijan’s non-oil and gas sector GDP is expected to grow by 3 percent by the end of this year and 4.4 percent next year. This growth is a positive indicator of the country’s economic diversification efforts. The Governor of the Central Bank of Azerbaijan, Taleh Kazimov, highlighted the significant increase in the country’s strategic foreign exchange reserves compared to the same period in 2023.
Strategic Foreign Exchange Reserves
The increase in strategic foreign exchange reserves serves as an important guarantor of the sustainability of Azerbaijan’s national economy. This reserve provides a cushion against economic shocks and enables the country to maintain its economic stability. The growth of the non-oil and gas sector, combined with the increase in foreign exchange reserves, indicates a positive outlook for Azerbaijan’s economy.
Conclusion
In conclusion, the global economy is expected to experience a moderate growth rate, with a relatively stable inflation rate. Azerbaijan’s economy, on the other hand, is expected to perform well, with a growing non-oil and gas sector and increasing strategic foreign exchange reserves. The country’s economic diversification efforts and prudent monetary policy are expected to contribute to its economic stability and sustainability.
