The Azerbaijani finance ministry expects GDP to grow by 2.7% in 2027.

Azerbaijan’s Finance Ministry said on Wednesday that they expect gross domestic product to increase by 2.7% in the year 2027, compared with 1.7% this year.

The ministry said that its draft budget for 2027 assumed an average oil cost of $65 per barrel.

The forecasted GDP growth is 2.6% for 2028, 4.2% for 2029, and 3.6% for 2030.

Oil and gas sector is expected to decline by 1.8% by 2027. This is the same rate of decline predicted for 2026. The non-oil & gas sector will grow by 4.4% compared to 3.1% in this year.

Azerbaijan is expecting a budget deficit of 3,166 billion manats (US$1.86 billion) in 2027. This would be equivalent to 2.2% of the GDP.

Budget revenues will increase by 1.6% to 39.234 bn manats from the level approved in 2026, and expenditures by 1.7% to 42 bn manats.

Budget revenues are projected to be equal to 27.8% GDP. 15.48 billion manats or 39.5% of the total will come from oil and gas, and 23.754 million manats or 60.5% from non-oil & gas.

Defense and national security expenditure is expected to reach 8.816 billion manats by 2027, which represents 20.8% of state budget expenses.

Azerbaijani Finance Ministry stated that Azerbaijani total state debt including both external and domestic debt was expected to reach 28.6 billion manats at the end of 2027. This is equivalent to 20.3% projected GDP.

$1 = 1.7 Manats

(source: Reuters)