Azerbaijan

Capital: Baku

Local time:
It is %T:%M %A in Baku

GDP growth rate: 2.4% in 2013

FDI stock: 9 593 million USD in 2010

Economic trends

Azerbaijan is an economy in transition, where the State continues to play a dominant role. It possesses 0.5% of the world's oil reserves (in 2009) and a significant agricultural potential. With the help of the IMF, Azerbaijan has pursued an economic stabilization program since the end of the 1990s, which has led to a GDP growth rate of more than 35% in 2006.  Since then, it has not had a respite, and even with the global economic crisis, the growth rate is estimated at 3.7% in 2010. The unemployment rate is stable at around 6% of the active population.  Azerbaijan's flourishing economic sectors are oil exports, banking, construction and real estate.  The inflation rate will be 5.5% in 2010.  The country should lower its high level of poverty but it will need to reduce its economy's great dependence on the oil sector. Corruption is still a huge problem: according to a survey conducted by the World's Bank, published in April 2010, 87% of the Azerbaijanis businessmen pointed corruption as a hinder to the development of their businesses.

Main branches of industry

The agricultural sector contributes around 6% to the GDP and employs almost 40% of the active population. However, productivity remains low due to the lack of modernization. The main crops are wheat, barley, corn, fruits (wine grapes), potatoes, cotton, silk and tobacco.  The share of the GDP in the agricultural sector has decreased 3.8% during 2010, in relation to 2009.

The industry sector accounts for 60% of the GDP and employs 12% of the active population. The share of the GDP in the industry sector has increased 2.8% in 2010, in relation to 2009. The main industrial sectors of the country are gas, oil and its by-products, steel, iron, chemical and petro-chemical products and lastly, textile.  The oil sector has accounted for more than 55% of the GDP in 2010. The non-petroleum sector has grown 5.4% in 2010. The share of the GDP in the construction sector has increased 7.8% during 2010, in relation to 2009.

Services account for one-third of the GDP and 49.6% of the active population.  The share of the services sector in the GDP has increased 6.3% during 2010, in relation to 2009.

Currently,  Azerbaijan wants to diversify its economy. The widespread salt springs in the country are progressively turning into flourishing health spa resorts. The old-fashioned craft of carpet weaving is still being practiced.

International trade

The Republic of Azerbaijan's foreign trade depends extensively on the ex-Soviet block countries. Russia and Georgia are among its main partners. However, Turkey, Germany, the United Kingdom, Italy, Israel, the United States, Iran and China are becoming more and more important in the Republic of Azerbaijan's trade relations. A memorandum signed in November 2010 with Iran could develop a cooperation in the energy and transport sectors.  Azerbaijan exports gas to Iran but the share of Iran in this trade with Azerbaijan was only 1% in 2009.