Republic of Azerbaijan: 2023 Article IV Consultation-Press Release; and Staff Report

Author: International Monetary Fund. Middle East and Central Asia Dept.

Growth is moderating following a strong post-pandemic rebound, and inflation is easing.

Volume/Issue: Volume 2024 Issue 045

Publication date: February 2024

ISBN: 9798400265785

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Topics covered in this book

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Banks and Banking , Inflation , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , International - Economics , Industries - Energy , inflation risk , monetary policy stance , banking sector interest rate , reserve assets adequacy , GDP estimate , summary data page , Inflation , Oil prices , Oil sector , Global , Central Asia and the Caucasus , Europe , Asia and Pacific

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Summary

Growth is moderating following a strong post-pandemic rebound, and inflation is easing. The near-term challenge is to resume fiscal consolidation following a temporary easing, and to ensure that inflation—which has recently returned to the target band—does not reignite amid external risks and domestic pressures. In the medium to long term, Azerbaijan’s biggest challenge is to reduce dependence on the hydrocarbon sector and advance private sector-led economic diversification.