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flag Azerbaijan Azerbaijan: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

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 2009201020112012 (e)2013 (e)
GDP (billions USD) 43.0854.3768.5080.8390.61
GDP (Constant Prices, Annual % Change) 9.35.0e0.27.12.4
GDP per Capita (USD) 4,7986,0087,510e8,7919,776
General Government Gross Debt (in % of GDP) 12.110.810.710.010.0
Inflation Rate (%) 1.55.7e9.3e10.38.1
Unemployment Rate (% of the Labor Force) 6.06.06.06.06.0
Current Account (billions USD) 10.1815.04e15.53e15.6313.76
Current Account (in % of GDP) 23.627.7e22.715.2-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

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 20062007200820092010
Azerbaijanian New Manat (AZN) - Average Annual Exchange Rate For 1 USD 0.890.860.820.800.80

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Azerbaijan on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
59.7/100
Position:
Mostly unfree
World Rank:
86/179
Regional Rank:
14/38

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

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 20062007200820092010
Imports of Goods (million USD) 5,2696,0457,5756,5146,800
Exports of Goods (million USD) 13,01521,26930,58621,09727,500
Imports of Services (million USD) 2,7843,3243,8263,2973,774
Exports of Services (million USD) 8411,1721,4541,6701,941
Imports of Goods and Services (Annual % Change) 14.314.013.2-5.38.4
Exports of Goods and Services (Annual % Change) 40.944.110.42.85.8
Imports of Goods and Services (in % of GDP) 38.828.524.824.823.2
Exports of Goods and Services (in % of GDP) 66.568.169.552.547.6
Trade Balance (million USD) 7,74515,22423,01214,58319,730
Trade Balance (Including Service) (million USD) 5,82213,09320,66912,97517,998
Foreign Trade (in % of GDP) 105.396.694.277.370.8

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

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

 

Main Products

Main Exports
(% of Exports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 86.9%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 6.0%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 1.4%
Cruise ships, excursion boats, ferry-boats, cargo...Cruise ships, excursion boats, ferry-boats, cargo ships, barges and similar vessels for the transport of persons or goods 0.8%
Cane or beet sugar and chemically pure sucrose, in...Cane or beet sugar and chemically pure sucrose, in solid form 0.7%
See More Products 4.1%
Main Imports
(% of Imports)
2010
Wheat and meslinWheat and meslin 4.3%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 4.2%
Cigars, cheroots, cigarillos and cigarettes of...Cigars, cheroots, cigarillos and cigarettes of tobacco or of tobacco substitutes 3.4%
Structures and parts of structures "e.g., bridges...Structures and parts of structures "e.g., bridges and bridge-sections, lock-gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns", of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel (excl. prefabricated buildings of heading 9406) 3.0%
Cane or beet sugar and chemically pure sucrose, in...Cane or beet sugar and chemically pure sucrose, in solid form 2.7%
See More Products 82.4%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
http://economy.gov.az/eng/ ">Ministry of Economic Development of Azerbaijan
Statistical Office
The State Statistical Committee of the Republic of Azerbaijan
Central Bank
The National Bank of Azerbaijan
Stock Exchange
Baku Stock Exchange
Search Engines
Search AZ
Azerbaijan Internet links
Azerbaijan International
Economic Portals
The Azerbaijani Economist
Business Information Service for the Newly Independant States

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Political Outline

Executive Power
The President is the chief of the state and is elected by popular vote for a five-year term. He holds the executive powers. The President appoints the Prime minister (who is the head of the government) and the Council of Ministers, who have to be confirmed by the National Assembly.
Legislative Power
The legislature is unicameral in Azerbaijan. The parliament called the National Assembly has 125 seats with its members being elected by popular vote to serve five-year terms. However, the National Assembly has historically been a weak body with little real influence. Azerbaijan has a strong presidential system in which the legislative and judicial branches have only limited independence. The people of Azerbaijan have very limited political rights.
Main Political Parties
The main political parties are: NAP (New Azerbaijan Party), CPA (Communist Party of Azerbaijan), PFP (Popular Front Party), CSP (Civic Solidarity Party), SDP ( Social Democratic Party of Azerbaijan). Opposition parties in Azerbaijan regularly factionalize and form new parties.
Current Political Leaders
President: Ilham ALIYEV (since October 2003, took over from his father) -NAP
Prime Minister: Artur RASIZADE (since November 2003) -NAP
Next Election Dates
Presidential: October 2013
National Assembly: November 2015
 

Indicator of Freedom of the Press

World Rank:
152/178
Evolution:
6 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Not Free
Political Freedom:
6/7
Civil Liberties:
5/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012