Azerbaijan: Economic and Political Outline
Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
Azerbaijan is an economy in transition, where the State continues to play a dominant role. It possesses 0.5% of the world's oil reserves (in 2009) and a significant agricultural potential. With the help of the IMF, Azerbaijan has pursued an economic stabilization program since the end of the 1990s, which has led to a GDP growth rate of more than 35% in 2006. Since then, it has not had a respite, and even with the global economic crisis, the growth rate is estimated at 3.7% in 2010. The unemployment rate is stable at around 6% of the active population. Azerbaijan's flourishing economic sectors are oil exports, banking, construction and real estate. The inflation rate will be 5.5% in 2010. The country should lower its high level of poverty but it will need to reduce its economy's great dependence on the oil sector. Corruption is still a huge problem: according to a survey conducted by the World's Bank, published in April 2010, 87% of the Azerbaijanis businessmen pointed corruption as a hinder to the development of their businesses.
| Main Indicators | 2009 | 2010 | 2011 | 2012 (e) | 2013 (e) |
| GDP (billions USD) | 43.08 | 54.37 | 68.50 | 80.83 | 90.61 |
| GDP (Constant Prices, Annual % Change) | 9.3 | 5.0e | 0.2 | 7.1 | 2.4 |
| GDP per Capita (USD) | 4,798 | 6,008 | 7,510e | 8,791 | 9,776 |
| General Government Gross Debt (in % of GDP) | 12.1 | 10.8 | 10.7 | 10.0 | 10.0 |
| Inflation Rate (%) | 1.5 | 5.7e | 9.3e | 10.3 | 8.1 |
| Unemployment Rate (% of the Labor Force) | 6.0 | 6.0 | 6.0 | 6.0 | 6.0 |
| Current Account (billions USD) | 10.18 | 15.04e | 15.53e | 15.63 | 13.76 |
| Current Account (in % of GDP) | 23.6 | 27.7e | 22.7 | 15.2 | - |
Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data
Note: (e) Estimated Data
The agricultural sector contributes around 6% to the GDP and employs almost 40% of the active population. However, productivity remains low due to the lack of modernization. The main crops are wheat, barley, corn, fruits (wine grapes), potatoes, cotton, silk and tobacco. The share of the GDP in the agricultural sector has decreased 3.8% during 2010, in relation to 2009.
The industry sector accounts for 60% of the GDP and employs 12% of the active population. The share of the GDP in the industry sector has increased 2.8% in 2010, in relation to 2009. The main industrial sectors of the country are gas, oil and its by-products, steel, iron, chemical and petro-chemical products and lastly, textile. The oil sector has accounted for more than 55% of the GDP in 2010. The non-petroleum sector has grown 5.4% in 2010. The share of the GDP in the construction sector has increased 7.8% during 2010, in relation to 2009.
Services account for one-third of the GDP and 49.6% of the active population. The share of the services sector in the GDP has increased 6.3% during 2010, in relation to 2009.
Currently, Azerbaijan wants to diversify its economy. The widespread salt springs in the country are progressively turning into flourishing health spa resorts. The old-fashioned craft of carpet weaving is still being practiced.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
| Employment By Sector (in % of Total Employment) | 38.4 | 12.7 | 48.9 |
| Value Added (in % of GDP) | 7.7 | 62.4 | 29.9 |
| Value Added (Annual % Change) | 5.0 | 3.2 | 4.5 |
Source: World Bank - Last Available Data.
| Monetary Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Azerbaijanian New Manat (AZN) - Average Annual Exchange Rate For 1 USD | 0.89 | 0.86 | 0.82 | 0.80 | 0.80 |
Source: World Bank - Last Available Data.
Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation
See the Country Risk Analysis Provided By Ducroire.
The Republic of Azerbaijan's foreign trade depends extensively on the ex-Soviet block countries. Russia and Georgia are among its main partners. However, Turkey, Germany, the United Kingdom, Italy, Israel, the United States, Iran and China are becoming more and more important in the Republic of Azerbaijan's trade relations. A memorandum signed in November 2010 with Iran could develop a cooperation in the energy and transport sectors. Azerbaijan exports gas to Iran but the share of Iran in this trade with Azerbaijan was only 1% in 2009.
| Foreign Trade Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Imports of Goods (million USD) | 5,269 | 6,045 | 7,575 | 6,514 | 6,800 |
| Exports of Goods (million USD) | 13,015 | 21,269 | 30,586 | 21,097 | 27,500 |
| Imports of Services (million USD) | 2,784 | 3,324 | 3,826 | 3,297 | 3,774 |
| Exports of Services (million USD) | 841 | 1,172 | 1,454 | 1,670 | 1,941 |
| Imports of Goods and Services (Annual % Change) | 14.3 | 14.0 | 13.2 | -5.3 | 8.4 |
| Exports of Goods and Services (Annual % Change) | 40.9 | 44.1 | 10.4 | 2.8 | 5.8 |
| Imports of Goods and Services (in % of GDP) | 38.8 | 28.5 | 24.8 | 24.8 | 23.2 |
| Exports of Goods and Services (in % of GDP) | 66.5 | 68.1 | 69.5 | 52.5 | 47.6 |
| Trade Balance (million USD) | 7,745 | 15,224 | 23,012 | 14,583 | 19,730 |
| Trade Balance (Including Service) (million USD) | 5,822 | 13,093 | 20,669 | 12,975 | 17,998 |
| Foreign Trade (in % of GDP) | 105.3 | 96.6 | 94.2 | 77.3 | 70.8 |
Source: WTO - World Trade Organization ; World Bank , Last Available Data
| Main Customers (% of Exports) |
2010 |
| Italy | 33.1% |
| France | 8.7% |
| Israel | 8.2% |
| United States | 8.0% |
| Ukraine | 4.2% |
| See More Countries | 37.8% |
| Main Suppliers (% of Imports) |
2010 |
| Russia | 17.4% |
| Turkey | 11.7% |
| Germany | 9.2% |
| China | 8.9% |
| Ukraine | 7.1% |
| See More Countries | 45.8% |
Source: Comtrade, Last Available Data
Source: Comtrade, Last Available Data
Source: Worldwide Press Freedom Index 2010, Reporters Without Borders
Map of freedom 2010
Source: Freedom House
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Last Updates: January 2012