4 GeoFroggy

Azerbaijan

Continent:

Geography

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Military &
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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 committed $60 billion to long-term 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. A consortium of Western oil companies began pumping 1 million barrels a day from a large offshore field in early 2006, through a $4 billion pipeline it built from Baku to Turkey's Mediterranean port of Ceyhan. By 2010 revenues from this project will double the country's current GDP. 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. Several other obstacles impede Azerbaijan's economic progress: the need for stepped up foreign investment in the non-energy sector, the continuing conflict with Armenia over the Nagorno-Karabakh region, and the pervasive corruption. 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

50% (2006 est.)

Labor Force

5.165 million (2006 est.)

Electricity production

20.1 billion kWh (2005)

Electricity Consumption

19.08 billion kWh (2005)

Electricity Exports

880 million kWh (2005)

Electricity Imports

2.082 billion kWh (2005)

Unemployment Rate

1.2% official rate (2006 est.)

Population Below Poverty Line

49% (2002 est.)

Household Income or Consumption by Percentage Share

Lowest 10%: 3.1%

Highest 10%: 29.5% (2001)

Distribution of Family Income Gini Index

36.5 (2001)

Budget

Revenues: $4.775 billion

Expenditures: $5.735 billion (2006 est.)

Public Debt

8.3% of GDP (2006 est.)

Commercial Bank Prime Lending Rate

Stock of Narrow Money

Stock of Broad Money

Stock of Domestic Credit

Market Value of Publicly Traded Shares

$NA

Reserves of Foreign Exchange and Gold

$2.5 billion (2006 est.)

Debt External

$1.972 billion (2006 est.)

Stock of Direct Foreign Investment at Home

$12.58 billion (2006 est.)

Stock of Direct Foreign Investment Abroad

$4.391 billion (2006 est.)

Exchange Rates

Exchange rates: Azerbaijani manats per US dollar - 0.8934 (2006), 4,727.1 (2005), 4,913.48 (2004), 4,910.73 (2003), 4,860.82 (2002)

Note: on 1 January 2006 Azerbaijan revalued its currency, with 5,000 old manats equal to 1 new manat

Year

GDP Official Exchange Rate

  • $14.25 billion 2006 est.

Fiscal Year

  • calendar year

GDP Purchasing Power Parity

    $59.71 billion (2006 est.)

GDP Real Growth Rate

    34.5% (2006 est.)

GDP Per Capital

    $7,500 (2006 est.)

Gross National Saving

GDP Composition by end Use

GDP Composition by Sector of Origin

  • Agriculture
    7.5%
  • Industry
    63.5%
  • Services
    28.9% (2006 est.)

Inflation Rate Consumer Prices

    8.3% (2006 est.)

Current Account Balance

    $3.708 billion (2006 est.)

Exports

    $13.01 billion f.o.b. (2006 est.)

Exports Partners

  • Italy
    44.7%
  • Israel
    10.7%
  • Turkey
    6.1%
  • France
    5.5%
  • Russia
    5.4%
  • Iran
    4.6%
  • Georgia
    4.5%

Exports Commodities

  • Oil and gas
    90%

Imports

    $5.269 billion f.o.b. (2006 est.)

Imports Partners

  • Russia
    22.4%
  • UK
    8.6%
  • Germany
    7.7%
  • Turkey
    7.3%
  • Turkmenistan
    7%
  • Ukraine
    6%
  • China
    4.2%

Imports Commodities

    Machinery and equipment, oil products, foodstuffs, metals, chemicals
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