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 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. An obstacle to economic progress, including stepped up foreign investment in the non-energy sector, 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 - $24.3 billion (2001 est.)

GDP - real growth rate 9.9% (2001 est.)

GDP - per capita purchasing power parity - $3,100 (2001 est.)

GDP - composition by sector
agriculture: 22%
industry: 33%
services: 45% (2000 est.)

Population below poverty line 64% (2001 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 (consumer prices) 1.6% (2001 est.)

Labor force 2.9 million (1997)

Labor force - by occupation agriculture and forestry 32%, industry 15%, services 53% (1997)

Unemployment rate 20% (official rate is 1.3% for 2001) (1999 est.)

Budget
revenues: $888 million
expenditures: $978 million, including capital expenditures of $NA (2001 est.)

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

Industrial production growth rate 5.1% (2001 est.)

Electricity - production 17.6 billion kWh (2000)

Electricity - production by source
fossil fuel: 91.37%
hydro: 8.63%
other: 0% (2000)
nuclear: 0%

Electricity - consumption 16.7 billion kWh (2000)

Electricity - exports 900 million kWh (2000)

Electricity - imports 1.25 billion kWh (2000)

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

Exports $2 billion (f.o.b., 2001 est.)

Exports - commodities oil and gas 90%, machinery, cotton, foodstuffs

Exports - partners Italy 43.7%, France 11.8%, Israel 7.7%, Turkey 6.0%, France 5.6% (2000)

Imports $1.6 billion (f.o.b., 2001)

Imports - commodities machinery and equipment, foodstuffs, metals, chemicals

Imports - partners Russia 21.3%, Turkey 11%, US 8.9%, Iran 5.8%, Germany 5.8% (2000)

Debt - external $1.5 billion (2001)

Economic aid - recipient ODA, $113 million (1996)

Currency Azerbaijani manat (AZM)

Currency code AZM

Exchange rates Azerbaijani manats per US dollar - 4,804 (11 February 2002), 4,656.58 (2001), 4,474.15 (2000), 4,120.17 (1999), 3,869 (1998), 3,985.38 (1997)

Fiscal year calendar year

NOTE: The information regarding Azerbaijan on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Azerbaijan Economy 2002 information contained here. All suggestions for corrections of any errors about Azerbaijan Economy 2002 should be addressed to the CIA.