{ "Introduction": { "Background": { "text": "
Azerbaijan -- a secular nation with a majority-Turkic and majority-Shia Muslim population -- was briefly independent (from 1918 to 1920) following the collapse of the Russian Empire; it was subsequently incorporated into the Soviet Union for seven decades.
Beginning in 1988, Azerbaijan and Armenia fought over the Nagorno-Karabakh region, which was populated largely by ethnic Armenians but incorporated into Soviet Azerbaijan as an autonomous oblast in the early 1920s. In the late Soviet period, an ethnic-Armenian separatist movement sought to end Azerbaijani control over the region. Fighting over Nagorno-Karabakh escalated after Armenia and Azerbaijan gained independence from the Soviet Union in 1991. By the time a ceasefire took effect in 1994, separatists with Armenian support controlled Nagorno‑Karabakh and seven surrounding Azerbaijani territories. After decades of cease-fire violations and sporadic flare-ups, a second sustained conflict began in 2020 when Azerbaijan tried to win back the territories it had lost in the 1990s. After significant Azerbaijani gains, Armenia returned the southern part of Nagorno-Karabakh and the surrounding territories to Azerbaijan. In September 2023, Azerbaijan took military action to regain the rest of Nagorno-Karabakh; after a conflict that lasted only one day, nearly the entire ethnic Armenian population of Nagorno-Karabakh fled to Armenia.
Since gaining its independence in 1991, Azerbaijan has significantly reduced the poverty rate and has directed some revenue from its oil and gas production to develop the country’s infrastructure. However, corruption remains a burden on the economy, and Western observers and members of the country’s political opposition have accused the government of authoritarianism. The country’s leadership has remained in the ALIYEV family since Heydar ALIYEV, the most highly ranked Azerbaijani member of the Communist Party during the Soviet period, became president during the first Nagorno-Karabakh War in 1993.
upper-middle income, oil-dependent Caucasus economy; minimal economic diversification and dominance of state-owned enterprises; growth and fiscal consolidation supported by oil revenues, but risks remain from demand shocks; potential economic gains from Nagorno-Karabakh ceasefire; education investments to diversify and retain human capital
" }, "Real GDP (purchasing power parity)": { "Real GDP (purchasing power parity) 2024": { "text": "$225.198 billion (2024 est.)" }, "Real GDP (purchasing power parity) 2023": { "text": "$216.388 billion (2023 est.)" }, "Real GDP (purchasing power parity) 2022": { "text": "$213.497 billion (2022 est.)" }, "note": "note: data in 2021 dollars" }, "Real GDP growth rate": { "Real GDP growth rate 2024": { "text": "4.1% (2024 est.)" }, "Real GDP growth rate 2023": { "text": "1.4% (2023 est.)" }, "Real GDP growth rate 2022": { "text": "4.7% (2022 est.)" }, "note": "note: annual GDP % growth based on constant local currency" }, "Real GDP per capita": { "Real GDP per capita 2024": { "text": "$22,100 (2024 est.)" }, "Real GDP per capita 2023": { "text": "$21,300 (2023 est.)" }, "Real GDP per capita 2022": { "text": "$21,100 (2022 est.)" }, "note": "note: data in 2021 dollars" }, "GDP (official exchange rate)": { "text": "$74.316 billion (2024 est.)", "note": "note: data in current dollars at official exchange rate" }, "Inflation rate (consumer prices)": { "Inflation rate (consumer prices) 2024": { "text": "2.2% (2024 est.)" }, "Inflation rate (consumer prices) 2023": { "text": "8.8% (2023 est.)" }, "Inflation rate (consumer prices) 2022": { "text": "13.9% (2022 est.)" }, "note": "note: annual % change based on consumer prices" }, "GDP - composition, by sector of origin": { "agriculture": { "text": "5.7% (2024 est.)" }, "industry": { "text": "42.6% (2024 est.)" }, "services": { "text": "42.3% (2024 est.)" }, "note": "note: figures may not total 100% due to non-allocated consumption not captured in sector-reported data" }, "GDP - composition, by end use": { "household consumption": { "text": "55.4% (2024 est.)" }, "government consumption": { "text": "14.4% (2024 est.)" }, "investment in fixed capital": { "text": "16.8% (2024 est.)" }, "investment in inventories": { "text": "4.3% (2024 est.)" }, "exports of goods and services": { "text": "45.9% (2024 est.)" }, "imports of goods and services": { "text": "-36.8% (2024 est.)" }, "note": "note: figures may not total 100% due to rounding or gaps in data collection" }, "Agricultural products": { "text": "milk, wheat, barley, potatoes, tomatoes, watermelons, onions, apples, maize, cotton (2023)", "note": "note: top ten agricultural products based on tonnage" }, "Industries": { "text": "petroleum and petroleum products, natural gas, oilfield equipment; steel, iron ore; cement; chemicals and petrochemicals; textiles" }, "Industrial production growth rate": { "text": "2.1% (2024 est.)", "note": "note: annual % change in industrial value added based on constant local currency" }, "Labor force": { "text": "5.02 million (2024 est.)", "note": "note: number of people ages 15 or older who are employed or seeking work" }, "Unemployment rate": { "Unemployment rate 2024": { "text": "5.6% (2024 est.)" }, "Unemployment rate 2023": { "text": "5.7% (2023 est.)" }, "Unemployment rate 2022": { "text": "5.7% (2022 est.)" }, "note": "note: % of labor force seeking employment" }, "Youth unemployment rate (ages 15-24)": { "total": { "text": "13.7% (2024 est.)" }, "male": { "text": "12.3% (2024 est.)" }, "female": { "text": "15.3% (2024 est.)" }, "note": "note: % of labor force ages 15-24 seeking employment" }, "Average household expenditures": { "on food": { "text": "42.7% of household expenditures (2023 est.)" }, "on alcohol and tobacco": { "text": "2% of household expenditures (2023 est.)" } }, "Remittances": { "Remittances 2024": { "text": "1.8% of GDP (2024 est.)" }, "Remittances 2023": { "text": "2.6% of GDP (2023 est.)" }, "Remittances 2022": { "text": "5% of GDP (2022 est.)" }, "note": "note: personal transfers and compensation between resident and non-resident individuals/households/entities" }, "Budget": { "revenues": { "text": "$30.966 billion (2022 est.)" }, "expenditures": { "text": "$22.95 billion (2022 est.)" }, "note": "note: central government revenues (excluding grants) and expenditures converted to US dollars at average official exchange rate for year indicated" }, "Public debt": { "Public debt 2021": { "text": "16.8% of GDP (2021 est.)" }, "note": "note: central government debt as a % of GDP" }, "Taxes and other revenues": { "text": "15.4% (of GDP) (2022 est.)", "note": "note: central government tax revenue as a % of GDP" }, "Current account balance": { "Current account balance 2024": { "text": "$4.671 billion (2024 est.)" }, "Current account balance 2023": { "text": "$8.329 billion (2023 est.)" }, "Current account balance 2022": { "text": "$23.478 billion (2022 est.)" }, "note": "note: balance of payments - net trade and primary/secondary income in current dollars" }, "Exports": { "Exports 2024": { "text": "$34.113 billion (2024 est.)" }, "Exports 2023": { "text": "$35.487 billion (2023 est.)" }, "Exports 2022": { "text": "$47.274 billion (2022 est.)" }, "note": "note: balance of payments - exports of goods and services in current dollars" }, "Exports - partners": { "text": "Italy 37%, Turkey 19%, Israel 5%, Greece 4%, Russia 4% (2023)", "note": "note: top five export partners based on percentage share of exports" }, "Exports - commodities": { "text": "crude petroleum, natural gas, refined petroleum, plastics, electricity (2023)", "note": "note: top five export commodities based on value in dollars" }, "Imports": { "Imports 2024": { "text": "$27.339 billion (2024 est.)" }, "Imports 2023": { "text": "$25.016 billion (2023 est.)" }, "Imports 2022": { "text": "$21.274 billion (2022 est.)" }, "note": "note: balance of payments - imports of goods and services in current dollars" }, "Imports - partners": { "text": "Russia 17%, China 16%, Turkey 14%, Georgia 4%, Germany 4% (2023)", "note": "note: top five import partners based on percentage share of imports" }, "Imports - commodities": { "text": "cars, crude petroleum, refined petroleum, broadcasting equipment, garments (2023)", "note": "note: top five import commodities based on value in dollars" }, "Reserves of foreign exchange and gold": { "Reserves of foreign exchange and gold 2024": { "text": "$12.699 billion (2024 est.)" }, "Reserves of foreign exchange and gold 2023": { "text": "$13.749 billion (2023 est.)" }, "Reserves of foreign exchange and gold 2022": { "text": "$11.338 billion (2022 est.)" }, "note": "note: holdings of gold (year-end prices)/foreign exchange/special drawing rights in current dollars" }, "Debt - external": { "Debt - external 2023": { "text": "$12.378 billion (2023 est.)" }, "note": "note: present value of external debt in current US dollars" }, "Exchange rates": { "Currency": { "text": "Azerbaijani manats (AZN) per US dollar -" }, "Exchange rates 2024": { "text": "1.7 (2024 est.)" }, "Exchange rates 2023": { "text": "1.7 (2023 est.)" }, "Exchange rates 2022": { "text": "1.7 (2022 est.)" }, "Exchange rates 2021": { "text": "1.7 (2021 est.)" }, "Exchange rates 2020": { "text": "1.7 (2020 est.)" } } }, "Energy": { "Electricity access": { "electrification - total population": { "text": "100% (2022 est.)" } }, "Electricity": { "installed generating capacity": { "text": "8.383 million kW (2023 est.)" }, "consumption": { "text": "23.857 billion kWh (2023 est.)" }, "exports": { "text": "3.246 billion kWh (2023 est.)" }, "imports": { "text": "212 million kWh (2023 est.)" }, "transmission/distribution losses": { "text": "2.197 billion kWh (2023 est.)" } }, "Electricity generation sources": { "fossil fuels": { "text": "93.5% of total installed capacity (2023 est.)" }, "solar": { "text": "0.2% of total installed capacity (2023 est.)" }, "wind": { "text": "0.3% of total installed capacity (2023 est.)" }, "hydroelectricity": { "text": "5.6% of total installed capacity (2023 est.)" }, "biomass and waste": { "text": "0.4% of total installed capacity (2023 est.)" } }, "Coal": { "consumption": { "text": "6,000 metric tons (2023 est.)" }, "imports": { "text": "10,000 metric tons (2023 est.)" } }, "Petroleum": { "total petroleum production": { "text": "618,000 bbl/day (2023 est.)" }, "refined petroleum consumption": { "text": "109,000 bbl/day (2023 est.)" }, "crude oil estimated reserves": { "text": "7 billion barrels (2021 est.)" } }, "Natural gas": { "production": { "text": "35.775 billion cubic meters (2023 est.)" }, "consumption": { "text": "12.703 billion cubic meters (2023 est.)" }, "exports": { "text": "23.65 billion cubic meters (2023 est.)" }, "imports": { "text": "2.173 billion cubic meters (2023 est.)" }, "proven reserves": { "text": "1.699 trillion cubic meters (2021 est.)" } }, "Energy consumption per capita": { "Total energy consumption per capita 2023": { "text": "66.467 million Btu/person (2023 est.)" } } }, "Communications": { "Telephones - fixed lines": { "total subscriptions": { "text": "1.33 million (2024 est.)" }, "subscriptions per 100 inhabitants": { "text": "13 (2024 est.)" } }, "Telephones - mobile cellular": { "total subscriptions": { "text": "11.3 million (2024 est.)" }, "subscriptions per 100 inhabitants": { "text": "110 (2024 est.)" } }, "Broadcast media": { "text": "TV is the most popular medium; many homes are hooked up to satellite; all Azerbaijan-based channels promote government positions; state-owned AzTV runs three national channels, and state-funded iTV is a national public service broadcaster; 4 national privately-owned stations; Turkish, Russian, and western TV is available on cable; analog terrestrial TV was phased out in 2016-17; radio outlets focus on entertainment, with around a dozen stations on FM in Baku; newspaper distribution is largely limited to Baku (2023)" }, "Internet country code": { "text": ".az" }, "Internet users": { "percent of population": { "text": "89% (2023 est.)" } }, "Broadband - fixed subscriptions": { "total": { "text": "2.15 million (2023 est.)" }, "subscriptions per 100 inhabitants": { "text": "21 (2023 est.)" } } }, "Transportation": { "Civil aircraft registration country code prefix": { "text": "4K" }, "Airports": { "text": "32 (2025)" }, "Heliports": { "text": "5 (2025)" }, "Railways": { "total": { "text": "2,944.3 km (2017)" }, "broad gauge": { "text": "2,944.3 km (2017) 1.520-m gauge (approx. 1,767 km electrified)" } }, "Merchant marine": { "total": { "text": "312 (2023)" }, "by type": { "text": "general cargo 40, oil tanker 44, other 228" } } }, "Military and Security": { "Military and security forces": { "text": "Azerbaijan Armed Forces: Land Forces, Air Forces, Navy Forces, Special Forces, State Border Service, Coast Guard