The International Monetary Fund expects Azerbaijan’s economy to grow more slowly than Armenia’s or Georgia’s in 2026 and 2027, according to its latest South Caucasus forecast. The IMF also projects higher inflation in Azerbaijan than in its two neighbors over the same period.
According to the International Monetary Fund’s (IMF) forecast, Azerbaijan’s real gross domestic product will grow by 1.7% in 2026 and 2.3% in 2027. By comparison, Georgia’s economy is projected to expand by 7.2% in 2026 and 5.7% in 2027, while Armenia’s growth is expected to hold steady at 5.5% in both years.
Unemployment forecasts also vary widely across the three countries. In Azerbaijan, unemployment is expected to stand at 5.3% in 2026 and 5.2% in 2027. In Armenia, the rate is projected at 12.8% in 2026 and 12.7% in 2027, while Georgia’s unemployment is forecast to remain at 13.9% in both years.
On consumer prices, Azerbaijan is expected to outpace its neighbors. The IMF projects inflation in Azerbaijan at 5.8% in 2026 and 5.6% in 2027. In Armenia, inflation is forecast to ease from 4.6% in 2026 to 3.6% in 2027, while in Georgia it is expected to fall from 5.4% to 3.6% over the same period.
