Economy Overview
Azerbaijan's high economic growth during 2006-10 was attributable to large and growing oil and gas exports, but some non-export sectors also featured double-digit growth, including construction, banking, and real estate. In 2012, economic growth picked up to 3.8%. Continued production declines in the oil sector were offset by strong growth in the non-oil sector. However, the non-oil sector growth may be driven primarily by government investment, which may not be sustainable if oil production continues to decline. Oil exports through the Baku-Tbilisi-Ceyhan Pipeline, the Baku-Novorossiysk, and the Baku-Supsa pipelines remain the main economic driver, but efforts to boost Azerbaijan's gas production are underway. The eventual completion of the geopolitically important Southern Gas Corridor between Azerbaijan and Europe will open up another, albeit, smaller source of revenue from gas exports. 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, Azerbaijan's ability to negotiate export routes for its growing gas production, and its ability to use 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
Industries
petroleum and natural gas, petroleum products, oilfield equipment, steel, iron ore; cement; chemicals and petrochemicals; textiles
Industrial Production Growth Rate
-2.3% (2012 est.)country comparison to the world: 159
Labor Force
4.696 million (2012 est.)country comparison to the world: 83
Unemployment Rate
5.7% (2012 est.)country comparison to the world: 58 5.4% (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: 95 36.5 (2001)
Budget
Revenues: $22 billion
Expenditures: $21.77 billion (2012 est.)
Public Debt
7.8% of GDP (2012 est.)country comparison to the world: 145 7.5% of GDP (2011 est.)
Central Bank Discount Rate
5% (31 December 2012 est.)country comparison to the world: 65 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
$14.15 billion (31 December 2012 est.)country comparison to the world: 70 $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
$17.01 billion (31 December 2012 est.)country comparison to the world: 86 $12.72 billion (31 December 2011 est.)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$11.28 billion (31 December 2012 est.)country comparison to the world: 72 $10.27 billion (31 December 2011 est.)
Debt External
$9.11 billion (31 December 2012 est.)country comparison to the world: 101 $8.427 billion (31 December 2011 est.)
Stock of Direct Foreign Investment at Home
$12.35 billion (31 December 2012 est.)country comparison to the world: 82 $10.35 billion (31 December 2011 est.)
Stock of Direct Foreign Investment Abroad
$7.516 billion (31 December 2012 est.)country comparison to the world: 60 $6.323 billion (31 December 2011 est.)
Exchange Rates
Azerbaijani manats (AZN) per US dollar -0.79 (2012 est.) 0.79 (2011 est.) 0.8 (2010 est.) 0.8 (2009) 0.82 (2008)
