Economy Overview
Azerbaijan's high economic growth during 2006-08 was attributable to large and growing oil exports, but some non-export sectors also featured double-digit growth, spurred by growth in the construction, banking, and real estate sectors. In 2009, economic growth remained above 9% even as oil prices moderated and growth in the construction sector cooled. In 2010, economic growth slowed to approximately 3.7%, although the impact of the global financial crisis was less severe than in many other countries in the region. The current global economic slowdown presents some challenges for the Azerbaijani economy as oil prices remain below their mid-2008 highs, highlighting Azerbaijan's reliance on energy exports and lackluster attempts to diversify its economy. Azerbaijan's oil production increased dramatically in 1997, when Azerbaijan signed the first production-sharing arrangement (PSA) with the Azerbaijan International Operating Company. Oil exports through the Baku-Tbilisi-Ceyhan Pipeline remain the main economic driver while efforts to boost Azerbaijan's gas production are underway. However, Azerbaijan has made only limited progress on instituting market-based economic reforms. Pervasive public and private sector corruption and structural economic inefficiencies remain a drag on long-term growth, particularly in non-energy sectors. Several other obstacles impede Azerbaijan's economic progress: the need for stepped up foreign investment in the non-energy sector and 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 oil and gas pipelines in the region, and Azerbaijan's ability to manage its energy wealth to promote sustainable growth in non-energy sectors of the economy and spur employment.
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
3.5% (2010 est.)country comparison to the world: 91
Labor Force
5.874 million (2010 est.)country comparison to the world: 65
Electricity production
18.6 billion kWh (2007 est.)country comparison to the world: 72
Electricity Consumption
18 billion kWh (2007 est.)country comparison to the world: 71
Electricity Exports
786 million kWh (2007 est.)
Electricity Imports
548 million kWh (2007 est.)
Unemployment Rate
0.9% (2010 est.)country comparison to the world: 3 6% (2009 est.)
Population Below Poverty Line
11% (2009 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: 6.1%
Highest 10%: 17.5% (2005)
Distribution of Family Income Gini Index
36.5 (2001)country comparison to the world: 81 36 (1995)
Public Debt
4.6% of GDP (2010 est.)country comparison to the world: 128 6.7% of GDP (2009 est.)
Central Bank Discount Rate
2% (31 December 2009)country comparison to the world: 53 8% (31 December 2008) note: this is the Refinancing Rate, the key policy rate for the National Bank of Azerbaijan
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$7.34 billion (31 December 2010 est)country comparison to the world: 77 $6.519 billion (31 December 2009 est)
Stock of Broad Money
$11.64 billion (31 December 2010 est.)country comparison to the world: 96 $10.54 billion (31 December 2009 est.)
Stock of Domestic Credit
$8.135 billion (31 December 2008 est.)country comparison to the world: 100 $5.726 billion (31 December 2007 est.)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$6.33 billion (31 December 2010 est.)country comparison to the world: 62 $5.364 billion (31 December 2009 est.)
Debt External
$3.221 billion (31 December 2010 est.)country comparison to the world: 124 $3.44 billion (31 December 2009 est.)
Stock of Direct Foreign Investment at Home
$8.918 billion (31 December 2010 est.)country comparison to the world: 80 $8.318 billion (31 December 2009 est.)
Stock of Direct Foreign Investment Abroad
$6.058 billion (31 December 2010 est.)country comparison to the world: 58 $5.558 billion (31 December 2009 est.)
Exchange Rates
Azerbaijani manats (AZN) per US dollar - 0.8035 (2010), 0.8038 (2009), 0.8219 (2008), 0.8581 (2007), 0.8934 (2006)
