Economy - overview:
Prior to the decline in global oil prices since 2014, Azerbaijan's high economic growth was attributable to rising energy exports and to some non-export sectors. 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 (SGC) between Azerbaijan and Europe will open up another source of revenue from gas exports. First gas to Turkey through the SGC is expected in 2018 with project completion expected by 2020-21.

Declining oil prices caused a 3.1% contraction in GDP in 2016, and a 0.8% decline in 2017, highlighted by a sharp reduction in the construction sector. The economic decline was accompanied by higher inflation, a weakened banking sector, and two sharp currency devaluations in 2015. Azerbaijan’s financial sector continued to struggle. In May 2017, Baku allowed the majority state-owed International Bank of Azerbaijan (IBA), the nation’s largest bank, to default on some of its outstanding debt and file for restructuring in Azerbaijani courts; IBA also filed in US and UK bankruptcy courts to have its restructuring recognized in their respective jurisdictions.

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. The government has, however, made efforts to combat corruption, particularly in customs and 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 in the agricultural sector - with Gulf Cooperation Council member countries, the US, and others. It is also improving Baku airport and the Caspian Sea port of Alat for use as a regional transportation and logistics hub.

Long-term prospects depend on world oil prices, Azerbaijan's ability to develop 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 for economic reforms that identified key non-energy segments of the economy for development, such as agriculture, logistics, information technology, and tourism. In October 2017, the long-awaited Baku-Tbilisi-Kars railway, stretching from the Azerbaijani capital to Kars in north-eastern Turkey, began limited service.

GDP (purchasing power parity):
$172.2 billion (2017 est.)
$172.1 billion (2016 est.)
$177.6 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 73
[see also: GDP country ranks ]

GDP (official exchange rate):
$40.67 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
0.1% (2017 est.)
-3.1% (2016 est.)
0.6% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 194
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$17,500 (2017 est.)
$17,700 (2016 est.)
$18,500 (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 101
[see also: GDP - per capita country ranks ]

Gross national saving:
24.6% of GDP (2017 est.)
22.7% of GDP (2016 est.)
27.3% of GDP (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 63
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 57.6% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 11.5% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 23.6% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0.5% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 48.7% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -42% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 6.1% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 53.5% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 40.4% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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

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

Industrial production growth rate:
-3.8% (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 191
[see also: Industrial production growth rate country ranks ]

Labor force:
5.118 million (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 82
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 37%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 14.3%
[see also: Labor force - by occupation - industry country ranks ]
services: 48.9% (2014)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
5% (2017 est.)
5% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 73
[see also: Unemployment rate country ranks ]

Population below poverty line:
4.9% (2015 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 3.4%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 27.4% (2008)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
33.7 (2008)
36.5 (2001)
country comparison to the world (CIA rank, may be based on non-current data): 110
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 9.556 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 10.22 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
23.5% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 126
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-1.6% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 93
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
54.1% of GDP (2017 est.)
50.7% of GDP (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 85
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
13% (2017 est.)
12.6% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 209
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
15% (10 March 2017)
15% (14 September 2016)
note: this is the Refinancing Rate, the key policy rate for the National Bank of Azerbaijan
country comparison to the world (CIA rank, may be based on non-current data): 13
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
12.7% (31 December 2017 est.)
12.56% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 64
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$6.202 billion (31 December 2017 est.)
$5.06 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 96
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$6.202 billion (31 December 2017 est.)
$5.06 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 98
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$13.31 billion (31 December 2017 est.)
$13.44 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 102
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
NA
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$1.685 billion (2017 est.)
-$1.363 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 45
[see also: Current account balance country ranks ]

Exports:
$15.15 billion (2017 est.)
$13.21 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 76
[see also: Exports country ranks ]

Exports - partners:
Italy 23.2%, Turkey 13.6%, Israel 6.1%, Russia 5.4%, Germany 5%, Czech Republic 4.6%, Georgia 4.3% (2017)

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

Imports:
$9.037 billion (2017 est.)
$9.004 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 105
[see also: Imports country ranks ]

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

Imports - partners:
Russia 17.7%, Turkey 14.8%, China 9.9%, US 8.3%, Ukraine 5.3%, Germany 5.1% (2017)

Reserves of foreign exchange and gold:
$6.681 billion (31 December 2017 est.)
$7.142 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 88
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$17.41 billion (31 December 2017 est.)
$13.83 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 99
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$79.53 billion (31 December 2017 est.)
$73.83 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 49
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$19.6 billion (31 December 2017 est.)
$17.05 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 56
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
Azerbaijani manats (AZN) per US dollar -
1.723 (2017 est.)
1.5957 (2016 est.)
1.5957 (2015 est.)
1.0246 (2014 est.)
0.7844 (2013 est.)