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Azerbaijan Economy Profile 2003

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Economy - overview

Azerbaijan'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)

purchasing power parity - $27 billion (2002 est.)

GDP - real growth rate

6.1% (2002 est.)

GDP - per capita (PPP)

purchasing power parity - $3,500 (2002 est.)

GDP - composition by sector

agriculture: 20%
industry: 33%
services: 47% (2001 est.)

Population below poverty line

49% (2002 est.)

Household income or consumption by percentage share

lowest 10%: 2.8%
highest 10%: 27.8% (1995)

Inflation rate (consumer prices)

2.6% (2002 est.)

Labor force

3.7 million (2001)

Labor force - by occupation

agriculture and forestry 41%, industry 7%, services 52% (2001)

Unemployment rate

16% (official rate is 1.1% for 2002) (2001 est.)

Distribution of family income - Gini index

36 (1995)

Budget

revenues: $786 million
expenditures: $807 million, including capital expenditures of $NA (2001)

Industries

petroleum and natural gas, petroleum products, oilfield equipment; steel, iron ore, cement; chemicals and petrochemicals; textiles

Industrial production growth rate

6% (2002 est.)

Electricity - production

18.23 billion kWh (2001)

Electricity - production by source

fossil fuel: 89.7%
hydro: 10.3%
nuclear: 0%
other: 0% (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 - imports

NA (2001)

Oil - exports

NA (2001)

Oil - proved reserves

589 million bbl (January 2002 est.)

Natural gas - proved reserves

62.3 billion cu m (January 2002 est.)

Agriculture - products

cotton, grain, rice, grapes, fruit, vegetables, tea, tobacco; cattle, pigs, sheep, goats

Exports

$2 billion f.o.b. (2002)

Exports - commodities

oil and gas 90%, machinery, cotton, foodstuffs

Exports - partners

Italy 57.2%, Israel 7.1%, Georgia 4.5%, Russia 3.4%, Turkey 2.9% (2001)

Imports

$1.8 billion f.o.b. (2002)

Imports - commodities

machinery and equipment, oil products, foodstuffs, metals, chemicals

Imports - partners

US 16.1%, Russia 10.7%, Turkey 10.4%, Kazakhstan 7.0%, Germany 5.1% (2001)

Debt - external

$1.4 billion (2002)

Economic aid - recipient

ODA, $140 million (2000 est.)

Currency

Azerbaijani manat (AZM)

Currency (code)

AZM

Exchange rates

Azerbaijani manats per US dollar - 4,860.82 (2002), 4,656.58 (2001), 4,474.15 (2000), 4,120.17 (1999), 3,869 (1998)

Fiscal year

calendar year


Source: CIA World Factbook
Unless otherwise noted, information in this page is accurate as of May 15, 2007


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