BAKU, Azerbaijan, October 22. External
positions in Azerbaijan are expected to improve more rapidly in
2026, the latest report by the International Monetary Fund (IMF)
says.
“Among CCA oil exporters, external positions in Azerbaijan and
Kazakhstan are expected to improve more rapidly in 2026 than
projected in April, supported by higher oil revenues, before
weakening from 2027 as energy prices ease,” says the October
edition of the Regional Outlook for the Middle East and Central
Asia issued by IMF on October 22.
The financial institution notes that among oil exporters, both
Azerbaijan and Kazakhstan recorded stronger trade balances.
“Changes in international reserves have been mixed, but
countries with the largest reserve declines since the start of the
conflict generally entered the shock with comfortable reserve
positions, with Bahrain as a notable exception,” reads the
report.
The authors of the report point out that Azerbaijan and
Kazakhstan are expected to continue consolidating in 2026, with
consolidation extending beyond 2026 in Azerbaijan.
“Economic activity has remained robust across much of the CCA in
2026. Limited direct exposure to the Middle East conflict, together
with strong domestic demand, remittances, and trade and transit
flows, has supported activity. Disruptions to trade through Iran
and Russia have nevertheless required costly rerouting and
adjustments to logistics networks. GDP growth slowed in Azerbaijan
and Kazakhstan — the latter reflecting disruptions to oil
production,” the report says.
