Category: Azer News

The International Monetary Fund’s latest World Economic Outlook delivers a sobering message that policymakers and investors can no longer afford to ignore. The war in the Middle East highlights the importance of establishing safeguards to reduce the impact of excessive inflation caused by global crises.

The IMF’s analysis reveals a complex transmission mechanism through which geopolitical conflict propagates economic damage. The report finalized before President Donald Trump’s declaration that the US-Iran ceasefire was “over.”

According to The Financial Times, the inflation trajectory warrants particular scrutiny. Global price growth is now projected to accelerate from 4.1% in 2025 to 4.7% in 2026, representing a substantial revision from the 4.4% forecast just three months prior.

The energy market dynamics underlying these forecasts deserve careful examination. The IMF explicitly warned that oil inventories, which had buffered earlier price impacts, are approaching multiyear lows. This inventory depletion creates a precarious situation in which any sustained supply disruption or hoarding could push markets into “stress levels.” The 5% jump in Brent crude to approximately $78 per barrel following Trump’s ceasefire announcement validates this concern and suggests further upside risk.

The differentiated impact across oil exporters reveals important structural vulnerabilities. Iraq, Kuwait, and Qatar face projected contractions in 2026, with recovery dependent on the resumption of normal energy production and transport operations. Saudi Arabia’s more favorable outlook (1.7% growth in 2026 and 5.5% in 2027) stems specifically from its diversified export routes, a strategic advantage that other regional producers lack. This divergence underscores how infrastructure decisions made years ago are now determining economic resilience.

The inflationary pressure is forcing a recalibration of monetary policy expectations across major economies. The IMF now anticipates the Federal Reserve will raise rates from the current 3.5-3.75% range in 2026 before cutting in 2027. For the Eurozone, the forecast is more stark, because inflation will remain above the European Central Bank’s 2% target through 2028, potentially necessitating additional rate increases beyond June’s quarter-point hike to 2.25%.

The contrast with Central Asia and the Caucasus is instructive. These regions maintain positive momentum despite higher energy and food prices, supported by commodity exports, expanding trade corridors, and infrastructure investment. Their resilience demonstrates that geographic position and economic structure, not merely policy choices, significantly determine outcomes in periods of global stress.

Speaking to AzerNEWS, economist Natiq Mammadov said the IMF’s outlook for higher global inflation in 2026 reflects current economic risks, although considerable geopolitical uncertainty remains.

Mammadov noted that ongoing geopolitical tensions, particularly in the Middle East, continue to pose a serious risk to global price stability.

“Ongoing geopolitical tensions, particularly in the Middle East, pose a serious risk of higher inflation in 2026, especially if they lead to disruptions in global energy supplies,” he said.

The economist stressed that several factors support the IMF’s outlook. He pointed out that global oil inventories remain relatively low, making energy markets more vulnerable to supply disruptions. He also noted that Brent crude prices have risen to around $78 per barrel, indicating that markets are already responding to geopolitical risks.

“Higher oil prices increase transportation and production costs, and businesses often pass these additional expenses on to consumers, contributing to higher inflation. If inflationary pressures persist, central banks may need to keep interest rates elevated for a longer period than previously expected,” Mammadov explained.

At the same time, he cautioned that considerable uncertainty remains.

“The actual inflation rate will depend largely on how geopolitical events unfold. If tensions ease and energy supplies remain stable, inflation could be lower than the IMF currently expects. On the other hand, any escalation of conflict or significant disruption to oil exports could push inflation above current forecasts,” Mammadov said.

Overall, he described the IMF’s projection as well-founded because it reflects the key risks facing the global economy, while emphasizing that its accuracy will ultimately depend on future geopolitical and energy market developments.

Speaking about the stronger performance of Central Asian and South Caucasus economies, Mammadov said the region has demonstrated resilience thanks to several structural advantages.

“Central Asian and Caucasus economies have shown strong resilience because they possess several structural advantages that have helped them cope with global economic challenges,” he emphasized.

According to him, strong commodity exports, particularly in energy and natural resources, have provided stable export revenues and supported economic growth even during periods of market volatility.

An expert also highlighted the expansion of regional and international trade corridors as another important factor.

He added that continuous investment in transport, logistics, and infrastructure has improved regional connectivity and strengthened long-term economic development.

In addition, Mammadov stressed that relatively stable macroeconomic policies have helped countries in the region adapt to changing global conditions.

“The combination of natural resources, infrastructure development, strategic location, and growing trade links has enabled them to withstand higher energy and food prices better than many other economies,” he said.

Mammadov stressed that the continued development of transport corridors and infrastructure could become one of the region’s greatest long-term economic advantages.

“Improved transport networks, including railways, highways, ports, and logistics centers, make the movement of goods faster, more efficient, and less costly. This encourages trade, strengthens supply chains, and makes the region more attractive to foreign investors,” he explained.

He emphasized that the strategic location of Central Asia and the South Caucasus between Europe and Asia further enhances their importance as international transit hubs.

According to him, efficient trade corridors can boost exports and imports, create new jobs, encourage industrial diversification, and reduce dependence on a limited number of economic sectors. He added that they can also improve economic resilience by providing alternative trade routes during periods of global disruption.

Turning to Azerbaijan’s energy sector, Mammadov said the country’s growing natural gas exports to Europe have the potential to significantly strengthen its long-term economic security.

“As Europe continues to diversify its energy sources, Azerbaijan has become an increasingly important and reliable energy partner,” he noted.

The economist explained that Azerbaijan’s strategic location and well-developed energy infrastructure allow it to supply natural gas to European markets while contributing to regional energy security and economic cooperation.

He pointed out that these exports generate substantial foreign exchange earnings, increase government revenues, attract international investment, and support the development of key sectors, including energy, transportation, and logistics.

“They also enhance the country’s geopolitical significance by strengthening long-term partnerships with European countries and reinforcing Azerbaijan’s role as a bridge between Europe and Asia,” Mammadov said.

He further noted that expanding energy cooperation creates opportunities beyond the gas sector by encouraging infrastructure development, promoting trade, and supporting broader economic integration with European markets.

While emphasizing that economic diversification remains essential for long-term resilience, he stressed that Azerbaijan’s natural gas resources provide a solid foundation for future growth.

“By using energy revenues to modernize the economy and invest in new industries, Azerbaijan can further strengthen its competitiveness and ensure lasting economic security. Azerbaijan’s role as a reliable supplier of natural gas is not only vital for its own economic development but also increasingly important for Europe’s long-term energy security and stability,” Mammadov added.

The World Health Organization (WHO) has warned that the cholera outbreak in Sudan could spread further as ongoing armed conflict, mass displacement, and the onset of the rainy season intensify the country’s already severe humanitarian crisis, AzerNEWS reports.

According to the WHO, at least 114 people have died and more than 1,300 others have been infected since the cholera outbreak was officially declared on June 27.

The disease has spread across several Sudanese states, with the hardest-hit areas including Darfur and Kordofan. Humanitarian operations and medical assistance have been severely hindered by the deteriorating security situation in these regions, limiting access to affected communities.

Speaking during an online press briefing from Geneva, Shibl Sahbani, the WHO Representative in Sudan, said the country is experiencing a renewed surge in cholera cases.

He noted that the outbreak has recorded a case fatality rate of 13.7 percent, an exceptionally high figure that underscores the severity of the crisis and the urgent need for expanded medical assistance.

According to the WHO’s latest assessment, Sudan is currently facing the world’s largest humanitarian crisis. More than 33 million people require humanitarian assistance, while 21 million are in need of healthcare services, highlighting the immense pressure on the country’s fragile health system.

A majority of Hungarians support maintaining strict migration controls along the European Union’s external borders and believe national governments should retain primary authority over immigration policy, according to the results of a newly released public opinion survey, AzerNEWS reports.

The findings indicate that most respondents favor stronger border security measures, reflecting continued public concern over migration and its impact on national security.

According to the survey, a significant share of Hungarians believe that illegal migration poses a threat to the country’s security and social stability.

At the same time, the poll also found broad support for granting asylum to people who genuinely require international protection, provided that all existing legal procedures are properly followed.

The results suggest that many Hungarians distinguish between irregular migration and legally processed asylum applications, backing a system that combines strict border enforcement with compliance with international humanitarian obligations.

The survey also found strong support for preserving the decision-making powers of national governments on migration issues. Most respondents believe that EU member states-not EU institutions-should retain the authority to make independent decisions on migration policy, taking into account their own national interests and security considerations.

The findings underscore the continued importance of migration as a key political issue in Hungary, where border security and national sovereignty remain central themes in public debate.

The final two quarterfinal matches of the 2026 FIFA World Cup will be played on July 12, completing the lineup for the tournament’s semifinals, AzerNEWS reports.

Co-hosted by the United States, Canada, and Mexico, the expanded World Cup has reached a decisive stage, with four nations still battling for the remaining two semifinal places.

The day’s action will begin with a highly anticipated clash between Norway and England, scheduled to kick off at 01:00. The match will be officiated by French referee Clément Turpin and will take place at Miami Stadium.

Later, reigning world champions Argentina will face Switzerland in the final quarterfinal at 05:00. Portuguese referee João Pedro Pinheiro has been appointed to oversee the encounter, which will be played at Kansas Stadium.

The winners of the two matches will advance to the semifinals, where they will meet for a place in the 2026 FIFA World Cup Final.

The first two quarterfinals have already determined one semifinal pairing. France secured a comfortable 2-0 victory over Morocco, while Spain edged Belgium 2-1 in a closely contested encounter. Those victories set up a blockbuster semifinal between two of Europe’s football powerhouses.

With France and Spain already through, attention now turns to whether England can continue its title challenge against a resurgent Norway, and whether Lionel Scaloni’s Argentina can keep its World Cup defense alive against a determined Swiss side.

As the tournament enters its final stages, the race to lift football’s most prestigious trophy is becoming increasingly intense, with every match carrying the weight of history and a place in the World Cup final at stake.

International Atomic Energy Agency (IAEA) Director General said on Friday that the agency is closely monitoring the situation at Iran’s Bushehr nuclear power plant amid the renewed hostilities between the United States and Iran, AzerNEWS reports.

Speaking to reporters following the latest round of consultations between Russia’s Rosatom and the IAEA in Kaliningrad, Grossi said that the agency has not noticed any direct attacks on the Bushehr nuclear power plant, only in its vicinity. “We haven’t directly observed or confirmed any attacks on the Bushehr plant. But my message is very clear and very important: any attacks against any nuclear power plant are impossible and unacceptable,” he stressed.

In addition, the IAEA chief called on all parties to the Middle East conflict to exercise restraint “as the physical integrity of any nuclear facility is an absolute priority for nuclear safety.”

President of the Republic of Azerbaijan Ilham Aliyev attended the opening of the Khankendi Hotel on July 11.

Ramin Guluzade, Head of the President’s Administrative Services Department, briefed the head of state on the facilities at the hotel, which is part of the Khankendi Hotel Complex.

The four-story hotel offers 101 guest rooms, including 92 deluxe rooms, four superior rooms, three deluxe suites, and two executive suites. The hotel can accommodate up to 236 guests. It also features a number of amenities, including cafes, restaurants, and a fitness center.

The hotel will employ 45 people, including 20 residents of the liberated cities and districts.

President of the Republic of Azerbaijan Ilham Aliyev attended the inauguration of the 14.7-megawatt ‘Aghbulag-1,’ 14.25-megawatt ‘Aghbulag-2,’ and 4-megawatt ‘Sheylanli’ hydroelectric power stations located on the Hochaz River in Lachin via video link on July 11.

Balababa Rzayev, Chairman of the Board of AzerEnerji OJSC, briefed the head of state on the energy potential of Lachin district and the operation of the power stations.

In line with the instructions of President Ilham Aliyev to transform the Garabagh and East Zangezur economic regions into a green energy zone, AzerEnerji OJSC continues work on the construction of hydroelectric power stations across the region.

The water resources of Lachin, part of the East Zangezur economic region, are largely formed within Azerbaijan’s territory. The Hakari River-the second-largest river in the Lesser Caucasus after the Tartar River-and its tributaries, the Hochaz, Shalva, and Zabukh rivers, are home to 11 hydroelectric power stations with a combined installed capacity of 72.6 MW.

Lachin district’s current electricity demand of 8-10 MW is fully met through green energy, while the surplus electricity is supplied to the national power grid.

Construction of three additional hydroelectric power stations with a total capacity of 10.7 MW is currently underway, and they are expected to be commissioned by the end of this year.

The district’s electricity demand is projected to reach 80 MW by 2040. Taking into account both existing and planned hydroelectric power station projects, Lachin will continue to be fully supplied with green energy.

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The 14.7 MW ‘Aghbulag-1’ Hydroelectric Power Station, located in the rugged mountainous terrain of Lachin district at an altitude of 2,150 meters above sea level, is one of the most challenging engineering projects implemented by Azerbaijani energy specialists. Built in an area without road infrastructure, the station demonstrates the professionalism and technical capabilities of local specialists. As part of the project, a modern main water intake structure was constructed, and a 4.8-kilometer-long derivation pipeline with a diameter of 1,200 millimeters was laid to deliver water to the station. All necessary infrastructure has been created to ensure its uninterrupted operation.

The ‘Aghbulag-1’ station will generate 93.2 million kWh of environmentally friendly electricity annually. This will save 21 million cubic meters of natural gas each year, prevent the emission of 37,000 tons of carbon, and provide enough green electricity to meet the needs of approximately 37,000 people.

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The 14.25 MW ‘Aghbulag-2’ Hydroelectric Power Station, built on the Hochaz River, is important not only for electricity generation but also for strengthening the region’s energy infrastructure. All production processes at the station are managed through modern automated control systems. As part of the project, a new 110/10 kV, 16 MVA substation has been built to ensure the station’s reliable integration into the national energy system.

A 5.7-kilometer-long derivation pipeline has been laid to supply water to the station.

The ‘Aghbulag-2’ HPP will generate 87.3 million kWh of electricity annually. As a result, 19.6 million cubic meters of natural gas will be saved each year, the emission of 35,000 tons of carbon will be prevented, and enough green electricity will be produced to meet the needs of approximately 35,000 people.

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Environmental protection was one of the key priorities in the design of the 4 MW ‘Sheylanli’ Hydroelectric Power Station in Lachin district. Hydrotechnical solutions that do not obstruct the natural migration of fish have been applied to protect the river ecosystem, while the hydroelectric units used have no negative impact on the natural flow or quality of the water.

As part of the project, a main water intake structure has been built at an altitude of 1,460 meters, and a 4.8-kilometer-long derivation pipeline has been constructed across the challenging mountainous terrain.

The ‘Sheylanli’ HPP will generate 19.4 million kWh of electricity annually. This will save 4.4 million cubic meters of natural gas each year, prevent the emission of more than 8,000 tons of carbon, and provide enough green electricity to meet the needs of approximately 8,000 people. In addition to strengthening the region’s energy security, the station will also contribute to preserving the ecological balance and promoting economic development.

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Built using modern technologies and international expertise and equipped with SCADA systems, these three hydroelectric power stations will be integrated into Azerbaijan’s unified energy system, enabling the generation of more than 200 million kWh of environmentally friendly electricity annually. As a result, 45 million cubic meters of natural gas will be saved each year, while approximately 80,000 tons of carbon emissions will be prevented.

Azerbaijan’s Flame team has won the gold medal at the 5th European Gym for Life Challenge, one of Europe’s most prestigious festivals for Gymnastics for All, held in Pistoia, Italy, AzerNEWS reports.

According to the Azerbaijan Gymnastics Federation, the Flame team delivered an outstanding performance, finishing first among 74 participating teams.

Competing in the Small Groups category, the Azerbaijani athletes impressed both the audience and the judging panel with their creative and technically accomplished routine, earning the festival’s top honor.

The European Gym for Life Challenge, organized every two years by European Gymnastics, is regarded as one of the continent’s premier events for the Gymnastics for All discipline. The festival brings together teams from across Europe to showcase creativity, technical excellence, artistic expression, and teamwork in a non-competitive, performance-based environment.

Flame’s victory adds another international achievement to Azerbaijan’s growing reputation in gymnastics and highlights the country’s continued success on the European stage.

At least 15 people have died after a tourist boat capsized near Phu Quoc Island in southern Vietnam, AzerNEWS reports, citing local media.

Vietnamese news outlet VnExpress reported that the vessel was carrying 32 Indian tourists and four crew members when the accident occurred.

According to preliminary information, the boat overturned shortly after departing from the harbor. The cause of the incident has not yet been determined.

Emergency responders rescued 21 people, while 15 others lost their lives in the accident.

Authorities have launched an investigation to determine the circumstances surrounding the tragedy, and emergency services continue to assess the incident.

The identities of the victims have not yet been officially released.

President of the Republic of Azerbaijan Ilham Aliyev reviewed the newly restored buildings of the ‘Yasaman’ Hotel in Shusha on July 11. The restoration was carried out by the Heydar Aliyev Foundation.

Assistant to the President Anar Alakbarov briefed the head of state on the restoration efforts.

The ‘Yasaman’ Hotel was inaugurated in 2023 with the participation of President Ilham Aliyev and First Lady Mehriban Aliyeva.

The exterior and interior of the hotel, restored in a style corresponding to its original appearance, were designed in keeping with Shusha’s medieval architectural traditions. The building, constructed in the mid-19th century in the style of the Garabagh architectural school, was destroyed during the occupation. The Heydar Aliyev Foundation prepared the design documentation for the project, and following the completion of restoration works in 2023, two hotel buildings began welcoming guests. The Foundation has now completed restoration and construction works on four additional buildings of the ‘Yasaman’ Hotel.

The restoration project was based on a new concept that took into account the architectural features of traditional Shusha houses. The new boutique-style buildings also feature glazed verandas and terrace areas.

Based on archival photographs, the doors and windows were recreated in accordance with the original architectural style. Landscaping and beautification works have also been carried out in the courtyard.