International rating agency Moody's projects Azerbaijan's real GDP growth to be between 2.5% and 3% in 2026-27, compared to an estimated 1.5% in 2025 and 4.1% in 2024, according to the agency's Azerbaijan Banking System Outlook update.

Growth will again be driven by the solid performance of the non-oil sector, in which banks conduct most of their business, supporting credit growth, asset quality and profitability, The Caspian Post reports, citing local media.

The agency previously forecast Azerbaijan's GDP growth at 3% in 2026 and 2.5% in 2027.

Economic growth will be supported by expanding capacity and activity in the transport and logistics sector, including key transport routes such as the Trans-Caspian International Transport Route; by reconstruction efforts in the Karabakh and East Zangazur regions; and by the government's push into renewables, which has drawn foreign investment into wind and solar projects.