Economy of Azerbaijan

Economy of Azerbaijan
Currency	1 Manat = 100 gopiks
Fiscal year	Calendar year
Trade organisations	CIS, ECO, GUAM, WTO(observer)
Statistics [2]
GDP ranking	92rd (2005) [3]
GDP (nominal)	$14. The manat ( currency code: AZN is the Currency of Azerbaijan. The Economic Cooperation Organization ( ECO) is an intergovernmental International organization involving seven Asian and three European nations GUAM redirects here See Guam for the Pacific island territory Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar. 05 billion (2006 est. )
GDP (PPP)	$58. 1 billion (2006 est. )
GDP growth	32. 5% (2006 est. )
GDP per capita	$7,300 (2006 est. )
GDP by sector	agriculture (14. 1%), industry ( 45. 7%), services (40. 2%) (2002)
Inflation	8% (2004)
Pop below poverty line	49% (2002)
Labour force	5. See also 2002 (disambiguation Year 2002 ( MMII) was a Common year starting on Tuesday of the Gregorian calendar. In economics inflation or price inflation is a rise in the general level of prices of goods and services over a period of time "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " The poverty threshold, or poverty line, is the minimum level of Income deemed necessary to achieve an adequate Standard of living in a given country See also 2002 (disambiguation Year 2002 ( MMII) was a Common year starting on Tuesday of the Gregorian calendar. 09 million (2004)
Labour force by occupation	services (52%), industry (7%), agriculture and forestry (41%) (2001)
Unemployment	1. "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " Year 2001 ( MMI) was a Common year starting on Monday according to the Gregorian calendar. Unemployment occurs when a person is available to work and currently seeking work but the person is without work. 2% (2004)
Main industries	petroleum and natural gas, petroleum products, oilfield equipment; steel, iron ore, cement; chemicals and petrochemicals; textiles
Trading Partners [4]
Exports	$6. "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " Petroleum ( L petroleum, from Greek πετρέλαιον, lit This page is about the physical properties of gas as a state of matter Petroleum ( L petroleum, from Greek πετρέλαιον, lit Steel is an Alloy consisting mostly of Iron, with a Carbon content between 0 Iron ores are rocks and Minerals from which Metallic Iron can be economically extracted In the most general sense of the word a cement is a binder a substance which sets and hardens independently and can bind other materials together The chemical industry comprises the companies that produce industrial chemicals Petrochemicals are chemical products made from raw materials of Petroleum or other Hydrocarbon origin A textile is a flexible material comprised of a network of natural or artificial Fibres often referred to as thread or Yarn. 117bn (2005)
Main partners	Italy 31. Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar. Italy (Italia officially the Italian Republic, (Repubblica Italiana is located on the Italian Peninsula in Southern Europe, and on the two largest 1%, Czech Republic 14. The Czech Republic ( ˈt͡ʃɛskaː ˈrɛpuˌblɪka short form in Česko ˈt͡ʃɛskɔ also called Czechia, 5%, Germany 9. Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. 4%, Turkey 6. Turkey (Türkiye known officially as the Republic of Turkey ( is a Eurasian Country that stretches 1%, Russia 6%, Georgia 5. Russia (Россия Rossiya) or the Russian Federation ( Rossiyskaya Federatsiya) is a transcontinental Country extending Georgia ( საქართველო, Sakartvelo) is a Transcontinental country in the Caucasus region situated at the dividing line between 3%, France 4. This article is about the country For a topic outline on this subject see List of basic France topics. 9% (2004) (2004)
Imports	$4. "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " 656bn (2004)
Main Partners	UK 13. "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located 9%, Russia 13. Russia (Россия Rossiya) or the Russian Federation ( Rossiyskaya Federatsiya) is a transcontinental Country extending 1%, Turkey 11. Turkey (Türkiye known officially as the Republic of Turkey ( is a Eurasian Country that stretches 5%, Germany 8%, Netherlands 5. Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands 3%, the People's Republic of China 5%, US 4. Talk People's Republic of China) PEOPLE'S REPUBLIC OF CHINA ARTICLE GUIDELINES The United States of America —commonly referred to as the 7%, Italy 4. Italy (Italia officially the Italian Republic, (Repubblica Italiana is located on the Italian Peninsula in Southern Europe, and on the two largest 5%, Ukraine 4. Ukraine (Україна Ukrayina, /ukrɑˈjinɑ/ is a country in Eastern Europe. 3% (2004)
Public finances [5]
Public debt	(10. "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " 4% of GDP)
Revenues	$6. 008bn (2006 est. )
Expenses	$5. 804bn (2006 est. )
Economic aid (recipient)	$140 million (2000)

Azerbaijan is an economy that has completed its post-Soviet transition into a major oil based economy (with the completion of the Baku-Tbilisi-Ceyhan Pipeline), from one where the state played the major role. 2000 ( MM) was a Leap year that started on Saturday of the Common Era, in accordance with the Gregorian calendar. Azerbaijan ( English; Azərbaycan officially the Republic of Azerbaijan (Azərbaycan Respublikası is the largest and most populous country in the South The Baku-Tbilisi-Ceyhan pipeline is a crude oil pipeline from the Azeri-Chirag-Guneshli Oil field in the Caspian Sea to the Mediterranean Azeri GDP grew an astonishing 41. 7% in the first quarter of 2007, very likely the highest of any nation worldwide. ^[6] Of course, such rates cannot be sustained, but interesting enough, despite reaching 26. 4% in 2005 (second highest GDP growth in the world in 2005 only to Equatorial Guinea), and 2006 over 36. The Republic of Equatorial Guinea ( República de Guinea Ecuatorial,) is a country in Central Africa. 6% (world highest), GDP has been accelerating every year. It remains to be seen how much of this money will reach the local people, however.

It has substantial oil reserves and a significant agronomic potential based on a wide variety of climatic zones. Petroleum ( L petroleum, from Greek πετρέλαιον, lit Since 1995, in cooperation with the IMF, Azerbaijan has pursued a highly successful economic stabilization program, which has brought inflation down from 1,800% in 1994 to 1. The International Monetary Fund ( IMF) is an International organization that oversees the Global financial system by following the Macroeconomic In economics inflation or price inflation is a rise in the general level of prices of goods and services over a period of time 8% in 2000. The national currency, the Azerbaijani manat, was stable in 2000, depreciating 3. The manat ( currency code: AZN is the Currency of Azerbaijan. 8% against the dollar. The budget deficit equaled a modest 1. 3% of GDP in 2000.

Progress on economic reform has generally lagged behind macroeconomic stabilization. Macroeconomics is a branch of Economics that deals with the performance structure and behavior of a national or regional Economy as a whole The government has undertaken regulatory reforms in some areas, including substantial opening of trade policy, but inefficient public administration in which commercial and regulatory interests are co-mingled limit the impact of these reforms. The government has largely completed privatization of agricultural lands and small and medium-sized enterprises. Privatization is the incidence or process of transferring ownership of business from the Public sector (government to the Private sector (business In August 2000, the government launched a second-stage privatization program, in which many large state enterprises will be privatized.

1 Macro-economic trend
2 External trade
3 Overview
4 Environmental issues
5 Diversification
6 Other statistics
7 References
8 External links
9 See also

Macro-economic trend

This is a chart of trend of gross domestic product of Azerbaijan at market prices estimated by the International Monetary Fund with figures in millions of Manats.

Year	Gross Domestic Product	US Dollar Exchange
1995	10,669,000	4,414. 14 Manats
2000	23,590,500	4,473. 82 Manats
2005	79,378,500	4,727. 21 Manats

For purchasing power parity comparisons, the US Dollar was exchanged at 1,565. 88 Manats only. Now the new Manat is in use, with an exchange rate of about 1 manat = $1. 10. Average wages in 2007 hover around $18-21 per day.

For more than a century the backbone of the Azerbaijani economy has been petroleum, which represented 10 percent of Azerbaijan’s GDP in 2005, and is projected to double to almost 20 percent of GDP in 2007^[1]. Petroleum ( L petroleum, from Greek πετρέλαιον, lit Now that Western oil companies are able to tap deepwater oilfields untouched by the Soviets because of poor technology, Azerbaijan is considered one of the most important spots in the world for oil exploration and development. The Union of Soviet Socialist Republics (USSR was a constitutionally Socialist state that existed in Eurasia from 1922 to 1991 Proven oil reserves in the Caspian Basin, which Azerbaijan shares with Russia, Kazakhstan, and Turkmenistan, are comparable in size to the North Sea, although exploration is still in the early stages. Oil reserves are the estimated quantities of Crude oil that are claimed to be recoverable under existing Economic and operating conditions The Caspian Sea is the largest enclosed body of water on Earth by area variously classed as the world's largest lake or a full-fledged Sea. Russia (Россия Rossiya) or the Russian Federation ( Rossiyskaya Federatsiya) is a transcontinental Country extending Kazakhstan, also Kazakstan ( Қазақстан, Qazaqstan, qɑzɑqˈstɑn Казахстан, Kazakhstán,) officially the Turkmenistan ( Türkmenistan; also known as Turkmenia) is a Turkic country in Central Asia. The North Sea is a marginal, Epeiric sea of the Atlantic Ocean on the European Continental shelf. ESHI TXEQ

External trade

Azerbaijani exports in 2006

Azerbaijan has concluded 21 production-sharing agreements with various oil companies. An export pipeline that transports Caspian oil to the Mediterranean from Baky through Tbilisi, Georgia to Ceyhan, Turkey (the Baku-Tbilisi-Ceyhan Pipeline) became operational in 2006. Baku (Bakı sometimes known as Baqy, Baky, Baki or Bakü, is the capital the largest city and the largest port of Azerbaijan Tbilisi (ˌtbiˈliːsi in Georgian: თბილისი is the capital and the largest city of the Republic of Georgia, lying on the banks of the Mt'k'vari Georgia ( საქართველო, Sakartvelo) is a Transcontinental country in the Caucasus region situated at the dividing line between Ceyhan is one of the most populous towns within the Turkish province of Adana and is an important Mediterranean port Turkey (Türkiye known officially as the Republic of Turkey ( is a Eurasian Country that stretches The Baku-Tbilisi-Ceyhan pipeline is a crude oil pipeline from the Azeri-Chirag-Guneshli Oil field in the Caspian Sea to the Mediterranean The pipeline is expected to generate as much as $160 billion in revenues for the country over the next 30 years. The recent high price of oil is highly beneficial to Azerbaijan's economy as the nation is currently in the midst of an oil boom. Eastern Caspian producers in Kazakhstan also have expressed interest in accessing this pipeline to transport a portion of their production. In March 2001, Azerbaijan concluded a gas agreement with Turkey, providing a significant future export market for Azerbaijan. This page is about the physical properties of gas as a state of matter

Overview

Through the Soviet period, Azerbaijan had always been more developed industrially than Armenia and Georgia, two neighboring Transcaucasia countries - but also less diversified, as a result of slow investment in non-oil sector. With a history of industrial development of more than 100 years, Azerbaijan proved to be a leading nation in Southern Caucasus throughout the turmoil of Soviet Union collapse in early 1990s until nowadays.

Oil remains the most prominent product of Azerbaijan's economy with cotton, natural gas and agriculture products contributing vastly to its unprecedented economic growth perceived over the last five consecutive years. More than $60 billion was invested into Azerbaijan's oil by major international oil companies in AIOC consortium operated by BP. BP plc, previously known as British Petroleum, is the third largest global Energy company, a multinational oil company (" Oil major Oil production under the first of these PSAs, with the Azerbaijan International Operating Company, began in November 1997 and now is about 500,000 b/d. Azerbaijan is so awash in oil that people visit petroleum spas (or "oil spas") to bathe in the local crude in Naftalan^[2]

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. Naftalan is a sahar (city in Azerbaijan, surrounded by the rayon of Goranboy. A planned economy or directed economy is an Economic system in which the Government or Workers' councils manages the Economy. A market economy is a realized Social system based on the Division of labour in which the prices of Goods and Services are determined in a Azerbaijan 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, 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 up with Turkey, Iran, UAE, and the countries of EU. Growth in 2000 should match growth in 1999. Azerbaijan is also a member of the Economic Cooperation Organization (ECO). The Economic Cooperation Organization ( ECO) is an intergovernmental International organization involving seven Asian and three European nations Long-term prospects will depend on world oil prices and the location of new pipelines in the region.

Environmental issues

Azerbaijan faces serious environmental challenges. Soil throughout the region was contaminated by DDT and toxic defoliants used in cotton production during the Soviet era. DDT (from its trivial name D ichloro- D iphenyl- T richloroethane is one of the best known synthetic Pesticides It is a chemical with a long A defoliant is any chemical sprayed or dusted on plants to cause its leaves to fall off Caspian petroleum and petrochemicals industries also have contributed to present air and water pollution problems. Several environmental organizations exist in Azerbaijan, yet few funds have been allocated to begin the necessary cleanup and prevention programs. Over-fishing by poachers is threatening the survival of Caspian sturgeon stocks, the source of most of the world's supply of caviar. Sturgeon is the Common name used for some 26 species of fish in the family Acipenseridae, including the genera Acipenser, The Convention on International Trade in Endangered Species (CITES) has listed as threatened all sturgeon species, including all commercial Caspian varieties. CITES (the United Nations Convention on International Trade in Endangered Species of Wild Fauna and Flora) is an international agreement between governments drafted

Diversification

In 2007, mining and hydrocarbon industries accounted for well over 95 per cent of the Azerbaijani economy. Diversification of the economy into manufacturing industries remain a long-term issue.

Other statistics

Investment (gross fixed): 54. 4% of GDP (2005 est. )

Household income or consumption by percentage share:
lowest 10%: 2. 8%
highest 10%: 27. 8% (1995)

Inflation rate (consumer prices): 9. 6% (2005 est. )

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

Industrial production growth rate: 40% (2005 est. Cotton is a soft staple Fibre that grows around the seeds of the cotton plant ( Gossypium sp Rice is a Cereal foodstuff which forms an important part of the diet of many people worldwide and as such it is a staple food for many For the Tokyo University supercomputer see Gravity Pipe. GRAPE, or GRA phics P rogramming E nvironment is The term fruit has different meanings dependent on context and the term is not synonymous in Food preparation and Biology. The term " vegetable " generally means the edible parts of Plants The definition of the word is traditional rather than Scientific, however Tea refers to the cured agricultural product of the leaves leaf buds and internodes of Camellia sinensis, which have been prepared and cured for the market Tobacco is an Agricultural product recognized as an addictive drug processed from the fresh Leaves of plants in the genus Nicotiana. Cattle, colloquially referred to as cows, are domesticated Ungulates a member of the Subfamily Bovinae of the family Pigs, also called hogs or' swine', are Ungulates which have been domesticated as sources of food leather and similar products since ancient times The domestic goat ( Capra aegagrus hircus) is a subspecies of goat Domesticated from the Wild goat of Southwest Asia and Eastern Europe )

Electricity - production: 20 billion kWh (2003)

Electricity - consumption: 20. 25 billion kWh (2003)

Electricity - exports: 700 million kWh (2003)

Electricity - imports: 2. 35 billion kWh (2003)

Current account balance $-2. 899 billion (2004 est. )

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

Reserves of foreign exchange and gold $875 million (2004 est. )

Debt - external: $1. 832 billion (2004 est. )

Economic aid - recipient: ODA, $140 million (2000 est. )

Currency: 1 Manat = 100 gopiks

Exchange rates: Azerbaijani manats per US dollar - 0. 85(2008) Azerbaijani manats per Euro - 1. 24(2008)

Fiscal year: calendar year

References

^ Azerbaijan: Energy profile (Enerpub, 13 December 2007[1])
^ Azerbaijani answer to oil glut: Bathe in it - Asia - Pacific - International Herald Tribune

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