Azerbaijan



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Azerbaijan Economy 2008


Economy - overview: Azerbaijan's high economic growth in 2006 and 2007 is attributable to large and growing oil exports. 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 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. A consortium of Western oil companies began pumping 1 million barrels a day from a large offshore field in early 2006, through a $4 billion pipeline it built from Baku to Turkey's Mediterranean port of Ceyhan. By 2010 revenues from this project will double the country's current GDP. 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. Several other obstacles impede Azerbaijan's economic progress: the need for stepped up foreign investment in the non-energy sector, the continuing conflict with Armenia over the Nagorno-Karabakh region, pervasive corruption, and elevated inflation. 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 oil and gas pipelines in the region, and Azerbaijan's ability to manage its energy wealth.
GDP (purchasing power parity): $64.66 billion (2007 est.)
GDP (official exchange rate): $31.32 billion (2007 est.)
GDP - real growth rate: 23.4% (2007 est.)
GDP - per capita (PPP): $8,000 (2007 est.)
GDP - composition by sector: agriculture: 6.2% industry: 63.3% services: 30.5% (2007 est.)
Labor force: 5.243 million (2007 est.)
Labor force - by occupation: agriculture: 41% industry: 7% services: 52% (2001)
Unemployment rate: 1% official rate (2007 est.)
Household income or consumption by percentage share: lowest 10%: 3.1% highest 10%: 29.5% (2001)
Distribution of family income - Gini index: 36.5 (2001)
Investment (gross fixed): 20% of GDP (2007 est.)
Budget: revenues: $6.755 billion expenditures: $8.572 billion (2007 est.)
Public debt: 6.7% of GDP (2007 est.)
Inflation rate (consumer prices): 16.7% (2007 est.)
Central bank discount rate: 13% (31 December 2007)
Commercial bank prime lending rate: 19.13% (31 December 2007)
Stock of money: $4.261 billion (31 December 2007)
Stock of quasi money: $2.593 billion (31 December 2007)
Stock of domestic credit: $5.726 billion (31 December 2007)
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: 25% (2007 est.)
Electricity - production: 23.8 billion kWh (2007 est.)
Electricity - consumption: 27.5 billion kWh (2007 est.)
Electricity - exports: 800 million kWh (2007 est.)
Electricity - imports: 500 million kWh (2007 est.)
Oil - production: 1.099 million bbl/day (2008 est.)
Oil - consumption: 160,000 bbl/day (2007 est.)
Oil - exports: 795,600 bbl/day (2007 est.)
Oil - imports: 4,267 bbl/day (2005)
Oil - proved reserves: 7 billion bbl (1 January 2008 est.)
Natural gas - production: 9.77 billion cu m (2007 est.)
Natural gas - consumption: 9.77 billion cu m (2007 est.)
Natural gas - exports: 0 cu m (2007 est.)
Natural gas - imports: 0 cu m (2005)
Natural gas - proved reserves: 849.5 billion cu m (1 January 2008 est.)
Current account balance: $9.019 billion (2007 est.)
Exports: $21.27 billion f.o.b. (2007 est.)
Exports - commodities: oil and gas 90%, machinery, cotton, foodstuffs
Exports - partners: Turkey 17.4%, Italy 15.5%, Russia 8.7%, Iran 7.2%, Indonesia 6.4%, Israel 6.1%, Georgia 5.7%, US 4.8%, France 4.3% (2007)
Imports: $6.045 billion f.o.b. (2007 est.)
Imports - commodities: machinery and equipment, oil products, foodstuffs, metals, chemicals
Imports - partners: Russia 17.6%, Turkey 10.9%, Germany 8.2%, Ukraine 8.2%, UK 7.2%, Japan 5.2%, China 4.9%, US 4.7% (2007)
Reserves of foreign exchange and gold: $4.273 billion (31 December 2007 est.)
Debt - external: $2.439 billion (31 December 2007 est.)
Stock of direct foreign investment - at home: $7.829 billion (2007 est.)
Stock of direct foreign investment - abroad: $4.912 billion (2007 est.)
Market value of publicly traded shares: $NA
Currency (code): Azerbaijani manat (AZN)
Exchange rates: Azerbaijani manats (AZN) per US dollar - 0.8581 (2007), 0.8934 (2006), 4,727.1 (2005), 4,913.48 (2004), 4,910.73 (2003) note: on 1 January 2006 Azerbaijan revalued its currency, with 5,000 old manats equal to 1 new manat

NOTE: The economy information regarding Azerbaijan on this page is re-published from the 2008 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Azerbaijan Economy 2008 information contained here. All suggestions for corrections of any errors about Azerbaijan Economy 2008 should be addressed to the CIA.