Fitch Ratings expects Azerbaijan's economy to grow by 3.5% in 2025 and 2.5% in 2026, Report informs, citing the agency.
By results of 2024, the GDP growth is assessed at 4.1%.
According to Fitch's analysis, government investments and development of non-hydrocarbon sectors will be the primary drivers of economic growth in the coming years.
However, the agency emphasizes that progress toward economic diversification remains limited. The hydrocarbon sector still accounts for 32% of GDP and up to 90% of the country's exports.
Fitch identifies several factors hampering economic diversification efforts, including significant state presence in the economy, limited financial intermediation, and low levels of foreign direct investment in non-energy sectors.
For January-May 2025, Azerbaijan's real GDP increased by 1.5% year-on-year, with growth primarily driven by the non-hydrocarbon economy, which expanded by 3.9% during the same period.