Economy - overview:
Azerbaijan's number one export is oil. 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 thus far 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. 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. One obstacle to economic progress is the need for stepped up foreign investment in the non-energy sector. A second obstacle 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 with Turkey and the nations of Europe. Long-term prospects will depend on world oil prices, the location of new pipelines in the region, and Azerbaijan's ability to manage its oil wealth.

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

Airlines
Airlines in Asia
Airlines Worldwide

Airports
Airports in Asia
Airports Worldwide

Country Budget
revenues: $2.715 billion
expenditures: $2.801 billion, including capital expenditures of NA (2004 est.)

Currency (code)
Azerbaijani manat (AZM)

Currency Exchange Rate
Azerbaijani manats per US dollar - 4,913.48 (2004), 4,910.73 (2003), 4,860.82 (2002), 4,656.58 (2001), 4,474.15 (2000)

Fiscal Year
calendar year

GDP (Gross Domestic Product)
GDP (purchasing power parity): $30.01 billion (2004 est.)
GDP - real growth rate: 9.8% (2004 est.)
GDP - per capita: purchasing power parity - $3,800 (2004 est.)
GDP - composition by sector:
agriculture: 14.1%
industry: 45.7%
services: 40.2% (2002 est.)

Imports / Exports
Exports: $3.168 billion f.o.b. (2004 est.)
Exports - commodities: oil and gas 90%, machinery, cotton, foodstuffs
Exports - partners: Italy 26.6%, Czech Republic 11.9%, Germany 8.1%, Indonesia 6.4%, Romania 6.2%, Georgia 6%, Russia 5.3%, Turkey 5.2%, France 4.1% (2004)

Imports: $3.622 billion f.o.b. (2004 est.)
Imports - commodities: machinery and equipment, oil products, foodstuffs, metals, chemicals
Imports - partners: Russia 16.1%, UK 12.5%, Turkey 10.5%, Germany 7.8%, Ukraine 5.6%, Netherlands 4.9%, US 4.1%, Italy 4% (2004)

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

Investing
Forex, Foreign Exchange Market: Currency Trading

Labor Force & Unemployment Rate
Labor force: 5.09 million (2004 est.)
Labor force - by occupation: agriculture and forestry 41%, industry 7%, services 52% (2001)
Unemployment rate: 1.2% (official rate) (2004 est.)