PremiumIMF projects wider fiscal deficits in Caucasus and Central Asia in 2025

The IMF forecasts a widening of fiscal deficits in the Caucasus and Central Asia to 3.3% of GDP in 2025, followed by a slight improvement to 3.1% in 2026. Oil importers are expected to continue fiscal adjustments, while oil exporters face higher spending. Long-term fiscal stability hinges on tax reforms and robust growth.