Economy of Azerbaijan

Economy of Azerbaijan
Baku, the financial capital of Azerbaijan
CurrencyAzerbaijani manat (AZN, ₼)
Calendar year
Trade organisations
CIS, ECO, GUAM, WTO (observer)
Country group
Statistics
PopulationIncrease 10,156,256 (2022 Dec.)[2]
GDP
  • Increase $78.749 billion (nominal, 2024)[3]
  • Increase $199.195 billion (PPP, 2024 est.)[3]
GDP rank
GDP growth
  • 4.6% (2022)
  • 1.1% (2023)
  • 2.8% (2024)[3]
GDP per capita
  • Increase $7,641 (nominal, 2024)[3]
  • Increase $19,328 (PPP, 2024 est.)[3]
GDP per capita rank
GDP by sector
13.6% (2023 Jan.)[5]
Population below poverty line
  • 4.8% (2019 est.)[4]
  • Positive decrease 7.0% on less than $5.50/day (2020)[6]
33.7 medium (2021)[4]
Steady 23 out of 100 points (2023, 154th rank)
Labour force
  • Increase 5,073,024 (2019)[8]
  • Increase 63.0% employment rate (2018)[9]
Labour force by occupation
Unemployment
  • Negative increase 5.0% (2020 est.)[10]
  • Positive decrease 4.9% (2018)[11]
  • Positive decrease 13.4% youth unemployment (2015)[12]
Average gross salary
AZN 839 / €466 monthly (December, 2022)
AZN 720 / €400 monthly (December, 2022)
Main industries
petroleum and natural gas; petroleum products; oilfield equipment; steel; iron ore; cement; chemicals; petrochemicals; textiles; machinery; cotton; foodstuffs
External
ExportsIncrease $38.1 billion (2022 Dec.)[13]
Export goods
oil and gas, machinery, foodstuffs, cotton
Main export partners
ImportsIncrease $14.5 billion (2022 Dec.)[13]
Import goods
machinery and equipment, foodstuffs, metals, chemicals
Main import partners
FDI stock
  • Increase $79.53 billion (31 December 2017 est.)[4]
  • Increase Abroad: $19.6 billion (31 December 2017 est.)[4]
Increase $4.4 billion (2019 est.)[4]
Negative increase $8.927 billion (2020 est.)[4]
Public finances
Negative increase 17.59% of GDP (2020 est.)[4]
5.55% (of GDP) (2019 est.)[4]
Revenues17.175 billion (2022 est.)[15]
Expenses19.002 billion (2022 est.)[16]
Increase $70,1 billion (2024 est.)[4]
All values, unless otherwise stated, are in US dollars.

The economy of Azerbaijan is highly dependent on oil and gas exports, in particular since the completion of the Baku-Tbilisi-Ceyhan Pipeline. The transition to oil production in the late 1990s led to rapid economic growth over the period 1995–2014.[21][22] Since 2014, GDP growth has slowed down substantially.[22]

Large oil reserves are a major contributor to Azerbaijan's economy. Gas and oil make up two-thirds of Azerbaijan's GDP, making it one of the top ten most fossil fuel-dependent economies in the world.[23] Gas and oil make up 90% of Azerbaijan's export revenues and 60% of its finances.[24]

Azerbaijan's economy is characterized by corruption and inequality.[21] The country's oil wealth has significantly strengthened the stability of Ilham Aliyev's regime and enriched ruling elites in Azerbaijan.[25][26][27][28] The country's oil wealth has enabled the state to host lavish international events, as well as engage in extensive lobbying efforts abroad.[29][30]

The national currency is the Azerbaijani manat. The private sector is weak in Azerbaijan, as the economy is dominated by state-owned enterprises.[22] More than half of the formal labor force works for the government in Azerbaijan.[22]

  1. ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 21 April 2024.
  2. ^ "Population on 1 January". ec.europa.eu/eurostat. Eurostat. Retrieved 13 July 2020.
  3. ^ a b c d e "World Economic Outlook Database, April 2024 Edition. (Azerbaijan)". International Monetary Fund. April 2024. Retrieved 21 April 2024.
  4. ^ a b c d e f g h i j k "Azerbaijan". The World Factbook (2024 ed.). Central Intelligence Agency. Retrieved 16 August 2019. (Archived 2019 edition.)
  5. ^ "Macroeconomic Indicactors, December 2023". stat.gov.az. State Statistics Committee.
  6. ^ "Poverty headcount ratio at $5.50 a day (2011 PPP) (% of population) – Azerbaijan". data.worldbank.org. World Bank. Retrieved 3 November 2019.
  7. ^ a b "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 17 November 2022.
  8. ^ "Labor force, total – Azerbaijan". data.worldbank.org. World Bank. Retrieved 3 November 2019.
  9. ^ "Employment to population ratio, 15+, total (%) (national estimate) – Azerbaijan". data.worldbank.org. World Bank. Retrieved 3 November 2019.
  10. ^ "World Economic Outlook Database, April 2022". IMF.org. International Monetary Fund. Retrieved 20 April 2020.
  11. ^ "Unemployment, total (% of total labor force) (national estimate) – Azerbaijan". data.worldbank.org. World Bank. Retrieved 6 March 2020.
  12. ^ "Unemployment, youth total (% of total labor force ages 15-24) (national estimate) – Azerbaijan". data.worldbank.org. World Bank. Retrieved 6 March 2020.
  13. ^ a b "Azərbaycan Dövlət Gömrük Komitəsi".
  14. ^ a b "Foreign trade partners of Azerbaijan". The States Customs Committee of the Republic of Azerbaijan. Retrieved 31 December 2022.
  15. ^ "Доходы и расходы госбюджета Азербайджана на 2022 год увеличиваются".
  16. ^ "Доходы и расходы госбюджета Азербайджана на 2022 год увеличиваются".
  17. ^ "Azerbaijan at BBB- according to Fitch Ratings" (in Turkish). London. 27 January 2012. Archived from the original on 31 December 2013.
  18. ^ "Moody's changes outlook on Azerbaijan's sovereign ratings to positive from stable". 8 March 2011.
  19. ^ "Sovereigns Ratings List".
  20. ^ "Azerbaijan Rating Stable". London. 13 January 2012. Archived from the original on 30 January 2015. Retrieved 1 April 2012.
  21. ^ a b Levine, Joshua (15 August 2012). "Big in Baku". The New York Times. ISSN 0362-4331.
  22. ^ a b c d "Azerbaijan: Country economic memorandum" (PDF). World Bank. September 2022.
  23. ^ Lo, Joe (9 December 2023). "Oil-reliant Azerbaijan chosen to host Cop29 climate talks". Climate Home News. Retrieved 9 December 2023.
  24. ^ "Oil-rich nations 'pushback' against fossil fuel phaseout". www.ft.com. 2024.
  25. ^ Altstadt, Audrey L. (2017). Frustrated Democracy in Post-Soviet Azerbaijan. Columbia University Press. pp. 114–120. ISBN 978-0-231-80141-6.
  26. ^ Waal, Thomas de (2 November 2018). The Caucasus: An Introduction. Oxford University Press. pp. 185–186, 226–229. ISBN 978-0-19-068311-5.
  27. ^ Ross, Michael (2012). The Oil Curse: How Petroleum Wealth Shapes the Development of Nations. Princeton University Press. p. 60. ISBN 978-0-691-14545-7.
  28. ^ Cornell, Svante E. (2015). Azerbaijan Since Independence. Routledge. pp. 210–211, 235. ISBN 978-1-317-47621-4.
  29. ^ Project, Organized Crime and Corruption Reporting. "The Azerbaijani Laundromat". OCCRP.
  30. ^ Harding, Luke; Barr, Caelainn; Nagapetyants, Dina (4 September 2017). "Everything you need to know about the Azerbaijani Laundromat" – via www.theguardian.com.