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, including construction, banking, and real estate, although most of this increase was tied to growth in the hydrocarbon sector. In 2011, economic growth slowed to 0.1%, largely because oil production reached a plateau. Real GDP growth improved in 2012, reaching about 40%, but the current global economic slowdown presents some challenges for the Azerbaijani economy as oil prices remain volatile, highlighting Azerbaijan's reliance on energy exports and lackluster attempts to diversify its economy. Oil exports through the Baku-Tbilisi-Ceyhan Pipeline remain the main economic driver while efforts to boost Azerbaijan's gas production are underway. Natural gas from fields under development in Azerbaijan by an international consortium is the only gas currently available for the geopolitically important Southern Corridor project, which aims to improve European energy security. 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, including 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 depend on world oil prices, the location of new oil and gas pipelines in the region, Azerbaijan's ability to negotiate export routes for its growing gas production, and its ability to manage its energy wealth to promote growth and spur employment in non-energy sectors of the economy.
Agriculture Products
cotton, grain, rice, grapes, fruit, vegetables, tea, tobacco; cattle, pigs, sheep, goats
Industrial Production Growth Rate
-5.2% (2011 est.)country comparison to the world: 162
Labor Force
6.206 million (2012 est.)country comparison to the world: 65
Unemployment Rate
1% (2012 est.)country comparison to the world: 7 6% (2011 est.)
Population Below Poverty Line
11% (2009 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: 3.4%
Highest 10%: 27.4% (2008)
Distribution of Family Income Gini Index
33.7 (2008)country comparison to the world: 93 36.5 (2001)
Budget
Revenues: $23.25 billion
Expenditures: $25.55 billion (2012 est.)
Public Debt
5.4% of GDP (2012 est.)country comparison to the world: 148 5.5% of GDP (2011 est.)
Central Bank Discount Rate
5% (31 December 2012 est.)country comparison to the world: 66 5.25% (31 December 2011 est.) 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
$14.16 billion (31 December 2012 est.)country comparison to the world: 68 $11.22 billion (31 December 2011 est.)
Stock of Broad Money
$17.68 billion (31 December 2011 est.)country comparison to the world: 89 $13.19 billion (31 December 2010 est.)
Stock of Domestic Credit
$13.78 billion (31 December 2012 est.)country comparison to the world: 91 $12.72 billion (31 December 2011 est.)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$9.87 billion (31 December 2012 est.)country comparison to the world: 74 $10.27 billion (31 December 2011 est.)
Debt External
$4.042 billion (31 December 2012 est.)country comparison to the world: 129 $4.056 billion (31 December 2011 est.)
Stock of Direct Foreign Investment at Home
$11.7 billion (31 December 2012 est.)country comparison to the world: 81 $10.35 billion (31 December 2011 est.)
Stock of Direct Foreign Investment Abroad
$6.923 billion (31 December 2012 est.)country comparison to the world: 57 $6.323 billion (31 December 2011 est.)
Exchange Rates
Azerbaijani manats (AZN) per US dollar -0.7839 (2012 est.) 0.7897 (2011 est.) 0.8027 (2010 est.) 0.8038 (2009) 0.8219 (2008)
