Economy Overview
Azerbaijan's number one export is oil. Azerbaijan's oil production declined through 1997 but has registered an increase every year since. Negotiation of production-sharing arrangements (PSAs) with foreign firms, which have thus far committed $60 billion to oilfield development, should generate the funds needed to spur future industrial development. Oil production under the first of these PSAs, with the Azerbaijan International Operating Company, began in November 1997. Azerbaijan shares all the formidable problems of the former Soviet republics in making the transition from a command to a market economy, but its considerable energy resources brighten its long-term prospects. Baku has only recently begun making progress on economic reform, and old economic ties and structures are slowly being replaced. An obstacle to economic progress, including stepped up foreign investment in the non-energy sector, is the continuing conflict with Armenia over the Nagorno-Karabakh region. Trade with Russia and the other former Soviet republics is declining in importance while trade is building with Turkey and the nations of Europe. Long-term prospects will depend on world oil prices, the location of new pipelines in the region, and Azerbaijan's ability to manage its oil wealth.
Agriculture Products
cotton, grain, rice, grapes, fruit, vegetables, tea, tobacco; cattle, pigs, sheep, goats
Industries
petroleum and natural gas, petroleum products, oilfield equipment; steel, iron ore, cement; chemicals and petrochemicals; textiles
Industrial Production Growth Rate
6% (2002 est.)
Labor Force
3.7 million (1997) (2001)
Electricity production
17.6 billion kWh (2000)
Electricity production by source
Fossil fuel: 91%
Hydro: 9%
Other: 0% (2000)
Nuclear: 0%
Electricity Consumption
16.7 billion kWh (2000)
Electricity Exports
900 million kWh (2000)
Electricity Imports
1.25 billion kWh (2000)
Currency
Azerbaijani manat (AZM)
Unemployment Rate
16% (official rate is 1.1% for 2002) (2001 est.)
Population Below Poverty Line
49% (2002)
Household Income or Consumption by Percentage Share
Lowest 10%: 3%
Highest 10%: 28% (1995)
Distribution of Family Income Gini Index
36 (1995)
Budget
Revenues: $786 million
Expenditures: $807 million, including capital expenditures of $NA (2001)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
Debt External
$1.4 billion (2002)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
Azerbaijani manats per US dollar - 4,804 (11 February 2002), 4,656.58 (2001), 4,474.15 (2000), 4,120.17 (1999), 3,869 (1998), 3,985.38 (1997)
