Azerbaijan to Support Economic Growth through Budget Expenditures in 2025

Azerbaijan plans to drive economic growth through increased government expenditures in 2025, according to a report by the International Monetary Fund (IMF). The country's budget policy will be expansionary in 2025, with a focus on supporting economic growth through government spending. However, the IMF forecasts a shift towards a contractionary fiscal policy from 2026 onwards, driven by a decrease in capital expenditures, such as infrastructure and public investments. This change is also expected to be implemented in other countries in the Caucasus and Central Asia (CCA) region.

Key Takeaways:

Azerbaijan's budget policy will be expansionary in 2025, with a focus on supporting economic growth through government spending.
Capital expenditures, including infrastructure and public investments, are expected to decrease in Azerbaijan and other CCA countries.
Fiscal policy in the CCA region, including Azerbaijan, will contract from 2026 onwards.
The IMF projects real GDP growth of 3% for 2025, and 2.5% for 2026 and 2030.
Azerbaijan's government will implement a transition to budget consolidation from 2026, with the aim of strengthening fiscal stability and increasing the sustainability of public finances.
The IMF assesses that the support of economic activity by budget expenditures in 2025, followed by a transition to budget consolidation, will have a positive impact on the country's economic situation.

Statistics:

Real GDP growth rate in Azerbaijan: 3% (2025), 2.5% (2026 and 2030)
Fiscal policy in the CCA region, including Azerbaijan: expansionary in 2025, contractionary from 2026 onwards
Capital expenditures in Azerbaijan and other CCA countries: expected to decrease
Number of countries in the Caucasus and Central Asia (CCA) region: includes Azerbaijan, Kazakhstan, and others

Sources:

Azeri-Press news agency (21 Oct 2025)
International Monetary Fund (IMF) - report cited in the article (no specific date mentioned)