Flag of Azerbaijan

Azerbaijan Economy Profile 2017

Home > Factbook > Countries > Azerbaijan

Economy - overviewPrior to the decline in the global oil prices since 2014, Azerbaijan's high economic growth was attributable to rising energy exports, and some non-export sectors also featured double-digit growth. 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 expected completion of the geopolitically important Southern Gas Corridor between Azerbaijan and Europe will open up another source of revenue from gas exports. Declining oil prices caused a 3.8 % contraction in GDP in 2016, reinforced by a sharp reduction in the construction sector. The economic decline has been accompanied by higher inflation and a weakened banking sector in the aftermath of the two sharp currency devaluations in 2015.

Azerbaijan has made limited progress with 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, but the government has made efforts to combat corruption, particularly in customs and with the “ASAN” one-stop window concept for government services. Several other obstacles impede Azerbaijan's economic progress, including the need for more foreign investment in the non-energy sector and the continuing conflict with Armenia over the Nagorno-Karabakh region. While trade with Russia and the other former Soviet republics remains important, Azerbaijan has expanded trade with Turkey and Europe and is seeking new markets for non-oil/gas exports, mainly from the agricultural sector, for example with Gulf Cooperation Council member countries, the United States, and others.

Long-term prospects depend on world oil prices, Azerbaijan's ability to implement export routes for its growing gas production, and its ability to improve the business environment and diversify the economy. In late 2016, the President approved a strategic roadmap that identified key non-energy segments of the economy for development, such as agriculture, logistics, and tourism.
GDP (purchasing power parity)$165.5 billion (2016 est.)
$172 billion (2015 est.)
$170.1 billion (2014 est.)
note: data are in 2016 dollars
GDP (official exchange rate)$37.58 billion (2016 est.)
GDP - real growth rate-3.8% (2016 est.)
1.1% (2015 est.)
2.8% (2014 est.)
GDP - per capita (PPP)$17,700 (2016 est.)
$18,300 (2015 est.)
$18,200 (2014 est.)
note: data are in 2016 dollars
Gross national saving30.5% of GDP (2016 est.)
31.6% of GDP (2015 est.)
36.7% of GDP (2014 est.)
GDP - composition, by end usehousehold consumption: 56.2%
government consumption: 13.9%
investment in fixed capital: 27.3%
investment in inventories: 0%
exports of goods and services: 47.5%
imports of goods and services: -44.9% (2016 est.)
GDP - composition by sectoragriculture: 7.2%
industry: 49.6%
services: 43.3% (2016 est.)
Population below poverty line4.9% (2015 est.)
Labor force4.961 million (2016 est.)
Labor force - by occupationagriculture: 37%
industry: 14.3%
services: 48.9% (2015)
Unemployment rate5% (2016 est.)
5.3% (2015 est.)
Unemployment, youth ages 15-24total: 13.8%
male: 12%
female: 15.6% (2013 est.)
Household income or consumption by percentage sharelowest 10%: 3.4%
highest 10%: 27.4% (2008)
Distribution of family income - Gini index33.7 (2008)
36.5 (2001)
Budgetrevenues: $10.54 billion
expenditures: $11.59 billion (2016 est.)
Taxes and other revenues30.9% of GDP (2016 est.)
Budget surplus (+) or deficit (-)-3.3% of GDP (2016 est.)
Public debt20.4% of GDP (2016 est.)
19.8% of GDP (2015 est.)
Inflation rate (consumer prices)12.4% (2016 est.)
3.7% (2015 est.)
Central bank discount rate15% (10 March 2017)
15% (14 September 2016)
note: this is the Refinancing Rate, the key policy rate for the National Bank of Azerbaijan
Commercial bank prime lending rate12.2% (31 December 2016 est.)
13.86% (31 December 2015 est.)
Stock of narrow money$4.194 billion (31 December 2016 est.)
$5.612 billion (31 December 2015 est.)
Stock of broad money$21.32 billion (31 December 2015 est.)
$21.57 billion (31 December 2014 est.)
Stock of domestic credit$11.23 billion (31 December 2016 est.)
$15.63 billion (31 December 2015 est.)
Market value of publicly traded shares$NA
Agriculture - productsfruit, vegetables, grain, rice, grapes, tea, cotton, tobacco; cattle, pigs, sheep, goats
Industriespetroleum and petroleum products, natural gas, oilfield equipment; steel, iron ore; cement; chemicals and petrochemicals; textiles
Industrial production growth rate-0.4% (2016 est.)
Current Account Balance-$1.42 billion (2016 est.)
-$222 million (2015 est.)
Exports$12.48 billion (2016 est.)
$15.59 billion (2015 est.)
Exports - commoditiesoil and gas roughly 90%, machinery, foodstuffs, cotton
Exports - partnersItaly 19.7%, Germany 10.7%, France 7.5%, Israel 7%, Czech Republic 4.8%, Indonesia 4.2% (2015)
Imports$8.532 billion (2016 est.)
$9.774 billion (2015 est.)
Imports - commoditiesmachinery and equipment, foodstuffs, metals, chemicals
Imports - partnersRussia 15.6%, Turkey 12.7%, US 9.2%, Germany 7.5%, Italy 6.4%, Japan 6.1%, UK 6%, China 5.6% (2015)
Reserves of foreign exchange and gold$7.453 billion (31 December 2016 est.)
$7.91 billion (31 December 2015 est.)
Debt - external$12.65 billion (31 December 2016 est.)
$12.28 billion (31 December 2015 est.)
Stock of direct foreign investment - at home$72.7 billion (31 December 2016 est.)
$66.5 billion (31 December 2015 est.)
Stock of direct foreign investment - abroad$16.28 billion (31 December 2016 est.)
$14.48 billion (31 December 2015 est.)
Exchange ratesAzerbaijani manats (AZN) per US dollar -
1.526 (2016 est.)
1.0246 (2015 est.)
1.0246 (2014 est.)
0.7844 (2013 est.)
0.79 (2012 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on July 9, 2017

Economy Comparison