BAKU, Azerbaijan, October 15. Long-standing cooperation with the World Bank (WB) and the International Monetary Fund (IMF) makes a significant contribution to strengthening institutional capacity and enhancing economic resilience in Azerbaijan, Chairman of the Central Bank of Azerbaijan Taleh Kazimov said.
He made the remarks during a meeting of the Constituency Group, of which Azerbaijan is a member, held on the sidelines of the WB and IMF Annual Meetings.
In his address, Kazimov also discussed the impact of global economic developments on Azerbaijan, measures to further strengthen financial stability, and initiatives aimed at ensuring the sustainable development of the financial sector.
Azerbaijan's cooperation with international financial institutions covers various areas of the economy. Its partnership with the World Bank encompasses digital development, infrastructure, energy, transport, agriculture, water management, employment, and institutional reforms. Since Azerbaijan joined the bank, approximately $4.9 billion in financing has been allocated for 53 projects.
These projects have focused on developing the country's infrastructure, expanding energy and transport capacity, improving water management, increasing employment, and strengthening institutional capacity. The World Bank has expressed interest in continuing its long-standing cooperation with Azerbaijan and expanding the partnership into new areas.
Azerbaijan's participation in international development initiatives is another dimension of this cooperation. After attaining upper-middle-income country status, Azerbaijan increased its support for international development initiatives in its capacity as a donor.
Meanwhile, forecasts by international financial institutions regarding Azerbaijan's economy are important for assessing the country's growth prospects. According to the World Bank's latest report, Azerbaijan's gross domestic product (GDP) growth is projected to rise from 1.2% in 2026 to 1.8% in 2027 and 1.9% in 2028.
The bank attributes the slowdown in economic growth in 2026 to the continued structural decline in the oil sector and weaker-than-expected growth in the non-oil economy amid lower public capital expenditure. However, stronger growth in the non-oil sector is expected to support an acceleration in overall economic growth in subsequent years.
The IMF's forecasts also reflect its expectations for Azerbaijan's economic growth. According to the fund's World Economic Outlook report, GDP growth in Azerbaijan is projected to increase from 1.7% in 2026 to 2.3% in 2027. In its previous report, published in April, the IMF had forecast growth of 2.2% in 2026 and 2.5% in 2027. According to the fund, Azerbaijan's GDP grew by 1.4% in 2025.
Inflation expectations are another important indicator in assessing economic resilience. The IMF forecasts that inflation in Azerbaijan will decline from 5.8% in 2026 to 5.6% in 2027. In its April report, the fund had projected inflation of 6% in 2026 and 5.1% in 2027. According to the IMF, inflation in Azerbaijan stood at 5.6% in 2025.
