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Azerbaijan Azerbaijan

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Azerbaijan – Quick View
ECR score46.95 (Mar 2011)
ECR rank78 (Mar 2011)
Economic
GDP (2010)USD 51.76 billion
GNI per capita PPP (2010)USD 8,747
FDI inflow (2010 - till Q3)USD 2,272 million
Inflation (Jan. 2011)8.3%
Central bank assets (Jan. 2011)USD 7,535.13 million
Unemployment rate (2009)6.01%
Government deficit (2010)USD 452.61 million
Tax revenue (2010)USD 5,345.17 million
Political
Government typeRepublic and Democratic
Recent political crisisNA
Economic freedom score (2011)92nd
Freedom of information score (2010)152nd
Corruption perception index (2010)134th
Structural
Birth rate (2009)54.9 per '000
Population balance (2010)Under 15 years - 22.09%
Population balance (2010)Above 65 years - 6.56%
Life expectancy years (2009)Males - 70.9 years
Life expectancy years (2009)Females - 76.1 years
Mortality rate (2009)5.9 per '000
Literacy rate (2009)99.6%
Internet access (2009)27 per 100 inhabitants

[Top] Economic Overview

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 BankPDF file)

Azerbaijan GDP and GDP growth rate

(Source: Central BankPDF 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)

Azerbaijan GNI and GNI growth rate

 

(Source: World Bank)

Income Tax Rate

 

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

 (Source: taxrates.cc)


Income tax for individual

Income slabs (AZN)

Tax levied

0 - 24,000

14%

24,000 and above

AZN 3,360 and 30% of income

(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)

Azerbaijan Inflation Rate

(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 BankPDF file)

Azerbaijan FDI Inflow

(Source: Central BankPDF file)

Foreign Portfolio Investment (FPI)

 

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

(Source: Central BankPDF file)

Azerbaijan Portfolio Investment

(Source: Central BankPDF 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 BankPDF file)

 

Central bank assets (AZN million)

Year

Net foreign assets

Net domestic assets

Total assets (foreign + domestic)

2011 (January)

5,776.8

238.4

6,015.2

2010

5,488.3

1,032.6

6,520.9

2009

4,257.2

650.6

4,907.8

2008

5,112.7

-148.8

4,963.9

2007

3,527.4

-86.6

3,440.8

2006

2,070.6

-26

2,044.6

2005

930.1

-44.3

885.8

2004

849.5

-15.9

833.6

2003

534.9

-28.8

506.1

2002

436.2

-24.3

411.9

2001

569.3

-210.3

359

(Source: Central BankPDF file)

[Top] Financial Indicators & Government Financial

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)

Month-wise CPI

Month

CPI

2009

December

158.5

November

157.2

October

155.2

September

154.7

August

154.0

July

153.9

June

152.7

May

153.5

April

153.9

March

154.2

February

155.2

January

156.4

2008

December

157.4

November

158.1

October

157.8

September

156.6

     

 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 BankPDF file)

Average interest rates on deposits and savings

Year

On domestic currency

On foreign currency

2011

11.16

11.35

2010

11.21

10.41

2009

11.61

7.96

2008

11.36

12.22

(Source: Central BankPDF 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 BankPDF file)

 

Money Supply (AZN million)

Month

M0

M1

M2

M3

2011

January

5,266.80

6,542.30

7,763.80

10,107.30

2010

December

5,455.80

6,718.90

8,297.50

10,527.50

November

4,994.30

5,964.00

7,417.70

9,620.80

October

4,942.60

5,999.90

7,314.50

9,619.90

September

4,897.40

5,901.70

7,156.10

9,390.00

August

4,850.80

5,803.90

7,046.60

9,315.00

July

4,811.40

5,756.50

6,892.00

9,054.50

June

4,587.30

5,544.10

6,629.40

9,082.50

May

4,543.50

5,439.80

6,454.00

8,929.80

April

4,434.30

5,337.50

6,347.70

8,735.50

March

4,312.10

5,190.70

6,182.60

8,673.40

February

4,083.90

4,982.50

5,853.10

8,132.60

January

3,972.80

4,857.20

5,837.70

8,143.80

2009

December

4,174.80

5,239.80

6,169.20

8,469.20

November

3,805.70

4,706.60

5,575.60

7,904.90

October

3,670.30

4,539.00

5,388.50

7,675.60

September

3,620.10

4,449.20

5,222.40

7,458.40

(Source: Central BankPDF file)

Government Expenditure

 

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

 

Azerbaijan Government Expenditure

 

(Source: Central BankPDF 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.

 

Official Exchange Rates

Year

USD

EUR

2010

0.8026

1.0657

2009

0.8038

1.1204

2008

0.8216

1.2099

2007

0.8579

1.1769

2006

0.8927

1.1231

2005

0.9459

1.1799

(Source: Central BankPDF file)


 

Government finances

 

Government Revenue

 

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

Azerbaijan Government Revenue

(Source: Central BankPDF 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 BankPDF 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)

Tax revenue (2010)

Type of tax

Revenue (BDT million)

Contribution to tax revenue (%)

Value Added Tax (VAT)

1,271,462.7

29.6

Excise

452,027.4

10.5

Profit Tax

1,429,824.9

33.3

Mining Tax

130,074.4

3.0

Land Tax

35,311.2

0.8

Property Tax

101,811.5

2.4

Individuals' Income Tax

590,235.1

13.7

State Duty

89,519.1

2.1

Road Tax

15,168.8

0.4

Simplified Tax

65,525.0

1.5

Other taxes

111,839.9

2.6

(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 BankPDF file)

Azerbaijan Current Account Balance

(Source: Central BankPDF 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 BankPDF file)

Balance of Payments (USD million)

Particulars

2010 Q3

2010 Q2

2010 Q1

2009 Q4

2009 Q3

Current Account (Net)

4,016

4,059

3,902

3,082

2,610

Foreign Trade Balance

5,181

5,196

5,041

4,515

4,154

Balance of services

-376

-359

-417

-695

-318

Income

-968

-922

-795

-981

-1,377

Current transfers

179

144

74

244

151

(Source: Central BankPDF file)

[Top] Labour Force and Employment Overview

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.orgExcel file, azstat.orgExcel file)

 

Azerbaijan Labour Force

(Source: azstat.orgExcel file, azstat.orgExcel file)

Unemployment Rate

 

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

 

Azerbaijan Unemployment Rate

 

(Source: azstat.orgExcel 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.orgExcel 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.orgExcel 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.orgExcel 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 BankPDF file, azstat.orgExcel file)


 

Azerbaijan Minimum Wage

(Source: Central BankPDF file)

[Top] Political Stability

Azerbaijan has a democratic Government. Its administration is divided into executive, legislative and judicial, independent within their respective authority limits.

(Source: azerbaijan.az, president.az)

Executive powers are headed by the President of the country. He is elected for a term of five years by way of secret ballot. The President elects the Cabinet of Ministers (the Cabinet) consisting of the Prime Minister, Deputy Prime Ministers, Ministers and heads of other central bodies. The Cabinet acts as the supreme executive body of the Government under the control and supervision of the President.

(Source: azerbaijan.az, president.az)

Legislative powers are headed by the Parliament of the country, known as the Milli Majlis of the Republic of Azerbaijan (the Milli Majlis). The Milli Majlis comprise of 125 deputies, elected for a term of five years by way of secret ballots.

(Source: azerbaijan.az, president.az)

Some of the political parties in Azerbaijan are –

 

  • Yeni Azerbaijan Party
  • Musavat Party
  • Whole Azerbaijan Khalg Jabhasy Party
  • Milli Istiglal Party
  • Azerbaijan Democrat Party
  • Adalet Party
  • Ana Veten Party
  • Social-Democrat Party
  • Kendly Party
  • Democratic Sahibkarlar Party

(Source: azstat.org)

Regulatory Environment

Azerbaijan is ranked 92nd 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.

 

Azerbaijan Economic Freedom Indices

(Source: heritage.org)

Corruption Perception

 

The country is ranked 134th 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 152nd 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)

[Top] Demographic Overview

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)

Population by age-group, 2010

Age group (years)

Population* (numbers)

0-14

1,987,900

15-44

4,597,200

45-64

1,822,200

65 and above

590,100

*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.

 

Azerbaijan Population by Gender

(Source: azstat.org)


Population growth during 2001-2010

Year

Males*

Females*

Total*

2010

4,413,400

4,584,000

8,997,400

2009

4,358,300

4,538,600

8,896,900

2008

4,298,800

4,481,000

8,779,800

2007

4,241,200

4,424,700

8,665,900

2006

4,184,000

4,369,000

8,553,000

2005

4,130,900

4,316,400

8,447,300

2004

4,081,200

4,267,800

8,349,000

2003

4,041,100

4,228,000

8,269,100

2002

4,002,400

4,188,900

8,191,300

2001

3,963,600

4,150,700

8,114,300

*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)


 

Azerbaijan Ethnic Environment

(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)

Azerbaijan Infant Mortality Rate

(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)


Life expectancy (age in years)

Period

Males

Females

2009

71

76

2005

69

75

2000

69

75

1995

65

73

1990

67

75

 

(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 67th 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 UNDPPDF file)

[Top] Soft Infrastructure

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)

Education statistics during 2009-2010

Level

Schools / Institutions

Students

Pre-school

1,635

107,954

Secondary

4,546

1,367,888

[Top] Hard Infrastructure

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)

 

Azerbaijan Expenditure in Road Transport

 

(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)

Azerbaijan Expenditure in Rail Transport

 

(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)

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