Azerbaijan Economy
Economy - overviewAzerbaijan's number one export is oil. Azerbaijan's oil production declined through 1997 but has registered an increase every year since. Negotiation of production-sharing arrangements (PSAs) with foreign firms, which have thus far committed $60 billion to long-term oilfield development, should generate the funds needed to spur future industrial development. Oil production under the first of these PSAs, with the Azerbaijan International Operating Company, began in November 1997. Azerbaijan shares all the formidable problems of the former Soviet republics in making the transition from a command to a market economy, but its considerable energy resources brighten its long-term prospects. Baku has only recently begun making progress on economic reform, and old economic ties and structures are slowly being replaced. One obstacle to economic progress is the need for stepped up foreign investment in the non-energy sector. A second obstacle is 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 pipelines in the region, and Azerbaijan's ability to manage its oil wealth.
GDP
purchasing power parity - $26.65 billion (2003 est.)
GDP - real growth rate
11.2% (2003 est.)
GDP - per capita
purchasing power parity - $3,400 (2003 est.)
GDP - composition by sector
agriculture: 14.1%
industry: 45.7%
services: 40.2% (2002 est.)
Investment
50.4% of GDP (2003)
Population below poverty line
49% (2002 est.)
Household income or consumption by percentage share
lowest 10%: 2.8%
highest 10%: 27.8% (1995)
Distribution of family income - Gini index
36 (1995)
Inflation rate
2.1% (2003 est.)
Labor force
4.99 million (2003)
Labor force - by occupation
agriculture and forestry 41%, industry 7%, services 52% (2001)
Unemployment rate
1.1% (official rate is 1.2%) (2003 est.)
Budget
revenues: $2.063 billion
expenditures: $2.202 billion, including capital expenditures of NA (2003)
Public debt
16.3% of GDP (2003 est.)
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
6.1% (2003 est.)
Electricity - production
18.23 billion kWh (2001)
Electricity - consumption
16.65 billion kWh (2001)
Electricity - exports
700 million kWh (2001)
Electricity - imports
400 million kWh (2001)
Oil - production
307,200 bbl/day (2001 est.)
Oil - consumption
140,000 bbl/day (2001 est.)
Oil - exports
NA (2001)
Oil - imports
NA (2001)
Oil - proved reserves
589 million bbl (1 January 2002)
Natural gas - production
5.72 billion cu m (2001 est.)
Natural gas - consumption
6.72 billion cu m (2001 est.)
Natural gas - exports
0 cu m (2001 est.)
Natural gas - imports
1 billion cu m (2001 est.)
Natural gas - proved reserves
62.3 billion cu m (1 January 2002)
Current account balance
$-2.021 billion (2003)
Exports
$2.605 billion f.o.b. (2003 est.)
Exports - commodities
oil and gas 90%, machinery, cotton, foodstuffs
Exports - partners
Italy 34.1%, Czech Republic 11.4%, Germany 10.5%, France 8.2%, Turkey 5.9%, Georgia 4.5%, Russia 4.5% (2003)
Imports
$2.498 billion f.o.b. (2003 est.)
Imports - commodities
machinery and equipment, oil products, foodstuffs, metals, chemicals
Imports - partners
Russia 15.5%, Turkey 12%, UK 8.7%, Germany 8.1%, China 7.8%, Ukraine 5.4%, Italy 4.6%, US 4.6%, Kazakhstan 4.3% (2003)
Reserves of foreign exchange & gold
$820.9 million (2003)
Debt - external
$1.575 billion (2003)
Currency
Azerbaijani manat (AZM)
Currency code
AZM
Exchange rates
Azerbaijani manats per US dollar - 4,910.73 (2003), 4,860.82 (2002), 4,656.58 (2001), 4,474.15 (2000), 4,120.17 (1999)
