UN lowers economic growth forecast for Azerbaijan's region

Commonwealth of Independent States (CIS) and Georgia Economic growth in the CIS and Georgia region is projected at 2.2 per cent for both 2025 and 2026, marking a downward revision of 0.3 percentage for each year from the May forecasts, APA-Economics reports.

These projections remain subject to significant uncertainties related to the war in Ukraine and ongoing sanctions. The revision reflects weakened economic activity in the Russian Federation, where key sectors such as construction and manufacturing face stagnation or contraction. Growth in the Russian Federation is projected at just 1.1 per cent in 2025.

The economy of Ukraine expanded by only 0.9 per cent year-on-year in the first quarter. Despite improved electricity supply and better harvest expectations, GDP growth is unlikely to exceed 2 per cent this year.

In contrast, Central Asian economies outperformed expectations in the first half of 2025, driven by strong private consumption and domestic investment, particularly in regional infrastructure projects.