Republic of Azerbaijan

Economic Overview

Azerbaijan’s considerable economic growth has been underpinned by large and continually expanding oil and gas exports. However, some non-export sectors such as construction, banking and real estate also experienced double-digit growth.

The eventual completion of the geopolitically important Southern Gas Corridor between Azerbaijan and Europe will open the doors to another source of revenue from gas exports.

Long-term economic prospects for the nation depend largely on world oil prices, its ability to negotiate export routes for its expanding gas production, and how well it uses its wealth from energy production to breathe new life into non-energy sectors of the Azerbaijani economy.

Exchange Controls

Azerbaijan is a member of the Commonwealth of Independent States (CIS), the Organisation for Democracy and Economic Development (GUAM), the Economic Cooperation Organisation (ECO) and the Organisation of the Black Sea Economic Cooperation (BSEC). Azerbaijan is also ranked 57th in the Global Competitiveness Report for 2010–2011, which is above other CIS countries

By 2012 the GDP of Azerbaijan increased 20-fold relative to its 1995 level

Exchange controls are administered by the Central Bank. Forward transactions in US dollar, euro and Russian ruble are processed via the Baku Interbank Currency Exchange.

Residents require authorisation from the Central Bank in order to effect settlements in foreign currencies.

Composition of GDP

• Services: 30.8%
• Industry: 63%
• Agriculture: 6.2%

Exports

Oil and gas (90%), machinery, cotton and foodstuffs.

Imports

Machinery and equipment, oil products, foodstuffs, metals and chemicals.

Principal trading partners – exports

• Italy: 25%
• Indonesia: 11.6%
• Thailand: 7%
• Germany: 5.7%
• Israel: 5.3%
• France: 4.7%
• India: 4.6%
• Russia: 4.5%
• USA: 4.1%

Principal trading partners – imports

• Russia: 1.41%
• Turkey: 13.7%
• UK: 12.5%
• Germany: 7.7%
• Ukraine: 5.5%
• China: 5.3%
• France: 4%