Azerbaijan has a growing economy mainly dependent on its oil and natural gas resources. The economy is also supported by its cotton production and exports. After getting independence from the Soviet Union in 1991, Azerbaijan has seen a considerable growth in industrial as well as agricultural sectors.

(Source: azstat.org, spainexchange.com, world66.com)

Gross Domestic Product (GDP)

In 2010, Azerbaijan reported a GDP of AZN 41.57 billion, an increase of 20.23% over 2009. Monthly GDP amounted to AZN 3,443 million in January 2011, indicating a slight increase compared to January 2010.

(Source: Central Bank– PDF file)

(Source: Central Bank– PDF file)

Gross National Income (GNI)

In 2009, GNI of the country amounted to AZN 4462.90 million, a decrease of 3.9% from 2008. In 2010, GNI per capita at purchasing power parity (PPP) was USD 8,747.

(Source: World Bank, UNDP  page: 4)

(Source: World Bank)

Income Tax Rate

The Government of Azerbaijan levies income tax of 14% to 30%.

 (Source: taxrates.cc)

(Source:taxrates.cc)

Corporate Tax Rate

Corporate tax in the country is charged at a single rate of 20% and VAT is 18%.

(Source:taxrates.cc)

Inflation Rate

In January 2011, inflation jumped to 8.3% from 5.7% in December 2010. During 2010, the inflation rate was at an average of 4.5%.

(Source: Central Bank)

(Source: Central Bank)

Foreign Direct Investment (FDI)

FDI inflow in Azerbaijan declined from USD 4,698 million in 2004 to USD 2,899 million in 2009. In 2010 (till Q3), the FDI inflow amounted to USD 2,272 million.

(Source: Central Bank– PDF file)

(Source: Central Bank– PDF file)

Foreign Portfolio Investment (FPI)

FPI and other investments of the country till Q3 of 2010 were USD -2,944 million.

(Source: Central Bank– PDF file)

(Source: Central Bank– PDF file)

Central Bank Assets

In January 2011, total assets of the central bank of Azerbaijan amounts to AZN 6,015.2 million, including gross international reserves worth AZN 5,813.7 million.

(Source: Central Bank– PDF file)

(Source: Central Bank– PDF file)

Consumer Price Index (CPI)

In December 2009, composite CPI for goods and services was 158.5 points. During 2009, prices of paid services saw a great rise compared to goods/products.

(Source: azstat.org)

 Base year = 2005 = 100

 (Source: azstat.org)

Interest Rates

As of 2011, average interest rates on deposits and savings is 11.16% on AZN i.e. domestic currency and 11.35% on foreign currency.

(Source: Central Bank – PDF file)

(Source: Central Bank – PDF file)

Money Supply

Azerbaijan classifies its money supply into – M0, M1, M2 and M3, where

• M0 refers to cash outside banks
• M1 includes M0 and demand deposits
• M2 includes M1 and time deposits
• M3 includes M2 and hard currency deposits

(Source: Central Bank– PDF file)

(Source: Central Bank– PDF file)

Government Expenditure

In 2010, total Government expenditure was AZN 11,766.0 million.

(Source: Central Bank– PDF file)

Official Exchange Rate

As of 2010, the value of AZN against one United States Dollar (USD) is AZN 0.8026 and against one Euro (EUR) is AZN 1.0657.

(Source: Central Bank– PDF file)

Government finances

Government Revenue

In 2010, total Government revenue for Azerbaijan was AZN 11,402.5 million.

(Source: Central Bank – PDF file)

Fiscal Balance

In 2010, the Government of Azerbaijan reported a fiscal deficit of AZN 363.5 million, indicating a 50.21% increase in the deficit over 2009.

(Source: Central Bank – PDF file)

Tax Revenue

In 2010, the Government generated revenues of AZN 4,292.8 million from all types of taxes. Revenue from Corporate tax (profit tax) and VAT were the highest contributor to tax revenue.

(Source: taxes.gov.az)

(Source: taxes.gov.az)

Current Account Balance

In Q3 of 2010, the current account balance of the country was USD 4,016 million, an increase of 53.87% over Q3 of 2009.

(Source: Central Bank – PDF file)

(Source: Central Bank – PDF file)

Balance of Payments

In Q3 of 2010, the current account showed a net foreign trade balance of USD 5,181 million, consisting of USD 6,616 million exported goods from the oil and gas sector.

(Source: Central Bank – PDF file)

(Source: Central Bank – PDF file)

Labour Force

In 2009, Azerbaijan had an economically active population (labour force) of 4.33 million, of which employed people were 4.07 million. During the year, employment was highest in agriculture, hunting and forestry.

(Source: azstat.org – Excel file, azstat.org – Excel file)

(Source: azstat.org – Excel file, azstat.org – Excel file)

Unemployment Rate

The country reported an unemployment rate of 6.01% in 2009.

(Source: azstat.org – Excel file)

Employment in Agriculture

In 2009, employment in agriculture, hunting, forestry and fishing/fish breeding was 1.57 million, constituting 38.47% of the total labour force.

(Source: azstat.org – Excel file)

Employment in Industries

In 2009, employment in the industrial sector was 4.64 million, constituting 11.40% of the total labour force.

(Source: azstat.org – Excel file)

Employment in Services

In 2009, employment of the entire service sector was 2.04 million, constituting 50.13% of the total labour force.

(Source: azstat.org – Excel file)

Minimum Wage

As of January 2011, the average monthly wage in the country is AZN 325.10. The highest wage rate is paid by the mining industry.

(Source: Central Bank– PDF file, azstat.org – Excel file)

(Source: Central Bank– PDF file)

(Source: azstat.org)

Regulatory Environment

Azerbaijan is ranked 92^nd in the 2011 Index of Economic Freedom. Its economic freedom score is 59.7 (out of 100), an increase of 0.9 points from the previous year. The rise in ranking was due to higher fiscal, monetary and freedom from corruption.

(Source: heritage.org)

Corruption Perception

The country is ranked 134^th in the World’s Corruption Perception Index 2010. Its index score is 2.4 (out of 10), reflecting high levels of corruption.

(Source: transperancy.org: Report)

Freedom of Information

Azerbaijan is ranked 152^nd on the Press Freedom Index 2010, indicating high restrictions on the press.

(Source: rsf.org)

Judicial System

The judicial power of Azerbaijan rests within the law courts. The judicial system consists of the following courts:

• Constitutional Court
• Supreme Court
• Court of Appeal
• Economic Court

(Source: azerbaijan.az, president.az)

The constitutional court is the superior authority of jurisdiction. The court is independent from other executive, legislative and judicial bodies of the Government. It ensures the abidance of constitutional laws, freedom and rights of citizens.

(Source: constcourt.gov.az)

Azerbaijan has an estimated population of 8,997,400 as of 2010, a growth of 1.13% over 2009. About 54.1% of the total population of the country resides in urban areas. 51.09% people fall between the age group of 15 to 44 years.

(Source: azstat.org, azstat.org, azstat.org)

*estimated

(Source: azstat.org)

As of 2010, the female population constitutes about 50.9% of the total population, i.e. there are 1,038.7 females per 1,000 males.

(Source: azstat.org)

*estimated

(Source: azstat.org)

Ethnic Environment

According to the 1999 census of the country, about 90.6% of people are of Azerbaijani ethnicity. Other known ethnic population are Lezgi, Russian, Armenian, Talish, etc.

(Source: azstat.org)

(Source: azstat.org)

Birth and Death Rate

In 2009, the country recorded a birth rate of 54.9 live births per 1,000 females.

(Source: azstat.org)

The average death rate in the country was 5.9 deaths per 1,000 persons in 2009. The death rate amongst males was greater i.e. 6.4 deaths per 1,000 persons.

(Source: azstat.org)

Infant Mortality Rate

In 2009, the infant mortality rate was 11.3 deaths per 1,000 live births.

(Source: azstat.org)

(Source: azstat.org)

Life Expectancy

In 2009, life expectancy at the time of birth was 70.9 years in the case of males and 76.1 years in the case of females.

(Source: azstat.org)

(Source: azstat.org)

Migration and Urbanisation

In 2009, about 2,300 people migrated in the country and about 1,400 people left the country for permanent residence.

(Source: azstat.org)

In 2010, about 54.1% of the total population resided in urban areas.

(Source: azstat.org)

Human Development Index (HDI) 

Azerbaijan is ranked 67^th on the HDI 2010. The HDI provides a composite measure of three dimensions of human development which are measured by life expectancy, adult literacy & enrolment in education and per capita GNP at Purchasing Power Parity (PPP).

(Source: HDR UNDP – PDF file)

Literacy Rate

In 2009, the literacy rate of the country was 99.6%. The literacy rate among urban people was 99.8% and among rural people was 99.4%.

(Source: azstat.org)

Education

Education in Azerbaijan is broadly divided into

• General education, including primary and general secondary level of education
• Secondary special education
• Higher education, consisting of bachelor degree, master degree and doctoral level of education

(Source: MOE)

The education system of the country also has vocational training and education, supported by 108 schools and institutions. The country has 4,546 general secondary schools and 61 special secondary schools.

(Source: MOE, MOE, MOE)

Mass Public Transit

In Azerbaijan, people mainly use road transport for travel. About 84% of the people travel by roadways. Buses and taxis in the country are the two main mediums for road transport. In 2009, about 97% of people preferred bus travel over taxis.

(Source: azstat.org)

Roadways

In 2009, the road length in Azerbaijan was measured at 16,276 km. of road. In 2009, total expenditure in road transport amounted to AZN 170.84 million.

(Source: azstat.org, azstat.org)

(Source: azstat.org)

Railways

In 2009, the country operated 2,079 km of railway lines. During the same year, approximately 6.39 million people travelled by railways. The total expenditure in rail transport amounted to AZN 162.78 million in 2009.

(Source: azstat.org)

(Source: azstat.org)

Ports

Azerbaijan has one sea port – Baku International Sea Trade Port. The port is located alongside the Caspian Sea. It has cargo, oil, ferry and passenger terminals.

(Source: bakuseaport.az)

Airports

There are four major airports in the country

• Heydar Aliyev International Airport
• Ganja (Gyandzha) Airport
• Lenkaran Airport
• Nakhchevan International Airport

(Source: azworldairports.com)

Heydar Aliyev International Airport is the biggest airport in Azerbaijan. The airport has two runways of 8,858 feet and 10,498 feet.

(Source: azworldairports.com)

Telecommunications

Aztelekom Production Unit is a public sector organisation offering telecommunication services in Azerbaijan. It has a large subscriber base in the country, creating a monopoly in the communication sector. There are many other private organisations that offer information and communication services.

(Source: mincom.gov.az)

In 2009, the total number of fixed landline subscribers were recorded at 1.4 million people and the number of mobile subscribers totalled to 7.75 million.

(Source: itu.int, itu.int)

In 2010, the number of internet users was registered at 3,689,000 people accounting for almost 44.4% of the entire population.

(Source: internetworldstats.com)