{ "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. Azerbaijan remains involved in the protracted Nagorno-Karabakh conflict with Armenia. Nagorno-Karabakh was a primarily ethnic Armenian region that Moscow recognized in 1923 as an autonomous oblast within Soviet Azerbaijan. In the late Soviet period, a separatist movement developed which sought to end Azerbaijani control over the region. Fighting over Nagorno-Karabakh began in 1988 and escalated after Armenia and Azerbaijan attained independence from the Soviet Union in 1991. By the time a ceasefire took effect in May 1994, separatists, with Armenian support, controlled Nagorno‑Karabakh and seven surrounding Azerbaijani territories.

Under the terms of a cease-fire agreement following Azerbaijan’s victory in the Second Nagorno-Karabakh War that took place from September-November 2020, Armenia returned to Azerbaijan the remaining territories it had occupied and also the southern part of Nagorno-Karabakh, including the culturally and historically important city that Azerbaijanis call Shusha and Armenians call Shushi. Despite Azerbaijan’s territorial gains, peace in the region remains elusive because of unsettled issues concerning the delimitation of borders, the opening of regional transportation and communication links, the status of ethnic enclaves near border regions, and the final status of the Nagorno-Karabakh region. Russian peacekeepers deployed to Nagorno-Karabakh to supervise the cease-fire for a minimum five-year term have not prevented the outbreak of sporadic, low-level military clashes along the Azerbaijan-Armenia border in 2021.

In the three decades following its independence in 1991, Azerbaijan has succeeded in significantly reducing the poverty rate and has directed revenues 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, pointing to elections that are neither free nor fair, state control of the media, and the systematic abuse of human rights targeting individuals and groups who are perceived as threats to the administration. The country’s leadership has remained in the Aliyev family since Heydar ALIYEV, formerly the most highly ranked Azerbaijani member of the Communist Party during the Soviet period, became president in the midst of the first Nagorno-Karabakh War in 1993. Heydar ALIYEV groomed his son to succeed him, and Ilham ALIYEV subsequently became president in 2003. As a result of two national referendums that eliminated presidential term limits and extended the presidential term from 5 to 7 years, President ALIYEV secured a fourth term in April 2018 in an election that international observers noted had serious shortcomings. Reforms are underway to diversify the country’s economy away from its dependence on oil and gas; additional reforms are needed to address weaknesses in government institutions, particularly in the education and health sectors, and the court system.

" } }, "Geography": { "Location": { "text": "Southwestern Asia, bordering the Caspian Sea, between Iran and Russia, with a small European portion north of the Caucasus range" }, "Geographic coordinates": { "text": "40 30 N, 47 30 E" }, "Map references": { "text": "Asia" }, "Area": { "total": { "text": "86,600 sq km" }, "land": { "text": "82,629 sq km" }, "water": { "text": "3,971 sq km" }, "note": "note: includes the exclave of Naxcivan Autonomous Republic and the Nagorno-Karabakh region; the region's autonomy was abolished by Azerbaijani Supreme Soviet on 26 November 1991" }, "Area - comparative": { "text": "about three-quarters the size of Pennsylvania; slightly smaller than Maine" }, "Land boundaries": { "total": { "text": "2,468 km" }, "border countries": { "text": "Armenia 996 km; Georgia 428 km; Iran 689 km; Russia 338 km; Turkey 17 km" } }, "Coastline": { "text": "0 km (landlocked); note - Azerbaijan borders the Caspian Sea (713 km)" }, "Maritime claims": { "text": "none (landlocked)" }, "Climate": { "text": "dry, semiarid steppe" }, "Terrain": { "text": "large, flat Kur-Araz Ovaligi (Kura-Araks Lowland, much of it below sea level) with Great Caucasus Mountains to the north, Qarabag Yaylasi (Karabakh Upland) to the west; Baku lies on Abseron Yasaqligi (Apsheron Peninsula) that juts into Caspian Sea" }, "Elevation": { "highest point": { "text": "Bazarduzu Dagi 4,466 m" }, "lowest point": { "text": "Caspian Sea -28 m" }, "mean elevation": { "text": "384 m" } }, "Natural resources": { "text": "petroleum, natural gas, iron ore, nonferrous metals, bauxite" }, "Land use": { "agricultural land": { "text": "57.6% (2018 est.)" }, "agricultural land: arable land": { "text": "arable land: 22.8% (2018 est.)" }, "agricultural land: permanent crops": { "text": "permanent crops: 2.7% (2018 est.)" }, "agricultural land: permanent pasture": { "text": "permanent pasture: 32.1% (2018 est.)" }, "forest": { "text": "11.3% (2018 est.)" }, "other": { "text": "31.1% (2018 est.)" } }, "Irrigated land": { "text": "14,277 sq km (2012)" }, "Major lakes (area sq km)": { "Salt water lake(s)": { "text": "Caspian Sea (shared with Iran, Russia, Turkmenistan, and Kazakhstan) - 374,000 sq km" } }, "Population distribution": { "text": "highest population density is found in the far eastern area of the country, in and around Baku; apart from smaller urbanized areas, the rest of the country has a fairly light and evenly distributed population" }, "Natural hazards": { "text": "droughts" }, "Geography - note": { "text": "both the main area of the country and the Naxcivan exclave are landlocked" } }, "People and Society": { "Population": { "text": "10,282,283 (July 2021 est.)" }, "Nationality": { "noun": { "text": "Azerbaijani(s)" }, "adjective": { "text": "Azerbaijani" } }, "Ethnic groups": { "text": "Azerbaijani 91.6%, Lezghin 2%, Russian 1.3%, Armenian 1.3%, Talysh 1.3%, other 2.4% (2009 est.)", "note": "note: the Nagorno-Karabakh region, which is part of Azerbaijan on the basis of the borders recognized when the Soviet Union dissolved in 1991, is populated almost entirely by ethnic Armenians" }, "Languages": { "Languages": { "text": "Azerbaijani (Azeri) (official) 92.5%, Russian 1.4%, Armenian 1.4%, other 4.7% (2009 est.)" }, "major-language sample(s)": { "text": "
Dünya fakt kitabı, əsas məlumatlar üçün əvəz olunmaz mənbədir (Azerbaijani)

The World Factbook, the indispensable source for basic information." }, "note": "note: Russian is widely spoken" }, "Religions": { "text": "Muslim 97.3% (predominantly Shia), Christian 2.6%, other <0.1, unaffiliated <0.1 (2020 est.)", "note": "note: religious affiliation for the majority of Azerbaijanis is largely nominal, percentages for actual practicing adherents are probably much lower" }, "Age structure": { "0-14 years": { "text": "22.84% (male 1,235,292/female 1,095,308)" }, "15-24 years": { "text": "13.17% (male 714,718/female 629,494)" }, "25-54 years": { "text": "45.29% (male 2,291,600/female 2,330,843)" }, "55-64 years": { "text": "11.41% (male 530,046/female 634,136)" }, "65 years and over": { "text": "7.29% (male 289,604/female 454,769) (2020 est.)" } }, "Dependency ratios": { "total dependency ratio": { "text": "43.4" }, "youth dependency ratio": { "text": "33.7" }, "elderly dependency ratio": { "text": "9.7" }, "potential support ratio": { "text": "10.3 (2020 est.)" } }, "Median age": { "total": { "text": "32.6 years" }, "male": { "text": "31.1 years" }, "female": { "text": "34.2 years (2020 est.)" } }, "Population growth rate": { "text": "0.71% (2021 est.)" }, "Birth rate": { "text": "13.59 births/1,000 population (2022 est.)" }, "Death rate": { "text": "6.92 deaths/1,000 population (2022 est.)" }, "Net migration rate": { "text": "0 migrant(s)/1,000 population (2021 est.)" }, "Population distribution": { "text": "highest population density is found in the far eastern area of the country, in and around Baku; apart from smaller urbanized areas, the rest of the country has a fairly light and evenly distributed population" }, "Urbanization": { "urban population": { "text": "57.2% of total population (2022)" }, "rate of urbanization": { "text": "1.38% annual rate of change (2020-25 est.)" }, "note": "note: data include Nagorno-Karabakh" }, "Major urban areas - population": { "text": "2.401 million BAKU (capital) (2022)" }, "Sex ratio": { "at birth": { "text": "1.06 male(s)/female" }, "0-14 years": { "text": "1.13 male(s)/female" }, "15-24 years": { "text": "1.14 male(s)/female" }, "25-54 years": { "text": "0.98 male(s)/female" }, "55-64 years": { "text": "0.84 male(s)/female" }, "65 years and over": { "text": "0.64 male(s)/female" }, "total population": { "text": "0.98 male(s)/female (2020 est.)" } }, "Mother's mean age at first birth": { "text": "24 years (2019 est.)" }, "Maternal mortality ratio": { "text": "26 deaths/100,000 live births (2017 est.)" }, "Infant mortality rate": { "total": { "text": "24.1 deaths/1,000 live births" }, "male": { "text": "25.23 deaths/1,000 live births" }, "female": { "text": "22.91 deaths/1,000 live births (2021 est.)" } }, "Life expectancy at birth": { "total population": { "text": "73.88 years" }, "male": { "text": "70.79 years" }, "female": { "text": "77.15 years (2021 est.)" } }, "Total fertility rate": { "text": "1.87 children born/woman (2021 est.)" }, "Contraceptive prevalence rate": { "text": "54.9% (2011)" }, "Drinking water source": { "improved: urban": { "text": "urban: 100% of population" }, "improved: rural": { "text": "rural: 93.3% of population" }, "improved: total": { "text": "total: 97.1% of population" }, "unimproved: urban": { "text": "urban: 0% of population" }, "unimproved: rural": { "text": "rural: 6.7% of population" }, "unimproved: total": { "text": "total: 2.9% of population (2020 est.)" } }, "Current Health Expenditure": { "text": "4% (2019)" }, "Physicians density": { "text": "3.45 physicians/1,000 population (2014)" }, "Hospital bed density": { "text": "4.8 beds/1,000 population (2014)" }, "Sanitation facility access": { "improved: urban": { "text": "urban: 100% of population" }, "improved: rural": { "text": "rural: NA" }, "improved: total": { "text": "total: NA" }, "unimproved: urban": { "text": "urban: 0% of population" }, "unimproved: rural": { "text": "rural: NA" }, "unimproved: total": { "text": "total: NA (2020 est.)" } }, "HIV/AIDS - adult prevalence rate": { "text": "0.1% (2020 est.)" }, "HIV/AIDS - people living with HIV/AIDS": { "text": "9,900 (2020 est.)" }, "HIV/AIDS - deaths": { "text": "<200 (2020 est.)" }, "Obesity - adult prevalence rate": { "text": "19.9% (2016)" }, "Children under the age of 5 years underweight": { "text": "4.9% (2013)" }, "Education expenditures": { "text": "2.7% of GDP (2019)" }, "Literacy": { "definition": { "text": "age 15 and over can read and write" }, "total population": { "text": "99.8%" }, "male": { "text": "99.9%" }, "female": { "text": "99.7% (2019)" } }, "School life expectancy (primary to tertiary education)": { "total": { "text": "14 years" }, "male": { "text": "13 years" }, "female": { "text": "14 years (2020)" } }, "Unemployment, youth ages 15-24": { "total": { "text": "12.4%" }, "male": { "text": "10.9%" }, "female": { "text": "14.2% (2019 est.)" } } }, "Environment": { "Environment - current issues": { "text": "local scientists consider the Abseron Yasaqligi (Apsheron Peninsula) (including Baku and Sumqayit) and the Caspian Sea to be the ecologically most devastated area in the world because of severe air, soil, and water pollution; soil pollution results from oil spills, from the use of DDT pesticide, and from toxic defoliants used in the production of cotton; surface and underground water are polluted by untreated municipal and industrial wastewater and agricultural run-off" }, "Environment - international agreements": { "party to": { "text": "Air Pollution, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Climate Change-Paris Agreement, Comprehensive Nuclear Test Ban, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping-London Convention, Ozone Layer Protection, Ship Pollution, Wetlands" }, "signed, but not ratified": { "text": "none of the selected agreements" } }, "Air pollutants": { "particulate matter emissions": { "text": "18.2 micrograms per cubic meter (2016 est.)" }, "carbon dioxide emissions": { "text": "37.62 megatons (2016 est.)" }, "methane emissions": { "text": "44.87 megatons (2020 est.)" } }, "Climate": { "text": "dry, semiarid steppe" }, "Land use": { "agricultural land": { "text": "57.6% (2018 est.)" }, "agricultural land: arable land": { "text": "arable land: 22.8% (2018 est.)" }, "agricultural land: permanent crops": { "text": "permanent crops: 2.7% (2018 est.)" }, "agricultural land: permanent pasture": { "text": "permanent pasture: 32.1% (2018 est.)" }, "forest": { "text": "11.3% (2018 est.)" }, "other": { "text": "31.1% (2018 est.)" } }, "Urbanization": { "urban population": { "text": "57.2% of total population (2022)" }, "rate of urbanization": { "text": "1.38% annual rate of change (2020-25 est.)" }, "note": "note: data include Nagorno-Karabakh" }, "Revenue from forest resources": { "forest revenues": { "text": "0.02% of GDP (2018 est.)" } }, "Revenue from coal": { "coal revenues": { "text": "0% of GDP (2018 est.)" } }, "Waste and recycling": { "municipal solid waste generated annually": { "text": "2,930,349 tons (2015 est.)" } }, "Major lakes (area sq km)": { "Salt water lake(s)": { "text": "Caspian Sea (shared with Iran, Russia, Turkmenistan, and Kazakhstan) - 374,000 sq km" } }, "Total water withdrawal": { "municipal": { "text": "449.6 million cubic meters (2017 est.)" }, "industrial": { "text": "3.062 billion cubic meters (2017 est.)" }, "agricultural": { "text": "9.27 billion cubic meters (2017 est.)" } }, "Total renewable water resources": { "text": "34.675 billion cubic meters (2017 est.)" } }, "Government": { "Country name": { "conventional long form": { "text": "Republic of Azerbaijan" }, "conventional short form": { "text": "Azerbaijan" }, "local long form": { "text": "Azarbaycan Respublikasi" }, "local short form": { "text": "Azarbaycan" }, "former": { "text": "Azerbaijan Soviet Socialist Republic" }, "etymology": { "text": "the name translates as \"Land of Fire\" and refers to naturally occurring surface fires on ancient oil pools or from natural gas discharges" } }, "Government type": { "text": "presidential republic" }, "Capital": { "name": { "text": "Baku (Baki, Baky)" }, "geographic coordinates": { "text": "40 23 N, 49 52 E" }, "time difference": { "text": "UTC+4 (9 hours ahead of Washington, DC, during Standard Time)" }, "daylight saving time": { "text": "does not observe daylight savings time" }, "etymology": { "text": "the name derives from the Persian designation of the city \"bad-kube\" meaning \"wind-pounded city\" and refers to the harsh winds and severe snow storms that can hit the city" }, "note": "note: at approximately 28 m below sea level, Baku's elevation makes it the lowest capital city in the world" }, "Administrative divisions": { "text": "

66 districts (rayonlar; rayon - singular), 11 cities (saharlar; sahar - singular);

rayons: Abseron, Agcabadi, Agdam, Agdas, Agstafa, Agsu, Astara, Babak, Balakan, Barda, Beylaqan, Bilasuvar, Cabrayil, Calilabad, Culfa, Daskasan, Fuzuli, Gadabay, Goranboy, Goycay, Goygol, Haciqabul, Imisli, Ismayilli, Kalbacar, Kangarli, Kurdamir, Lacin, Lankaran, Lerik, Masalli, Neftcala, Oguz, Ordubad, Qabala, Qax, Qazax, Qobustan, Quba, Qubadli, Qusar, Saatli, Sabirabad, Sabran, Sadarak, Sahbuz, Saki, Salyan, Samaxi, Samkir, Samux, Sarur, Siyazan, Susa, Tartar, Tovuz, Ucar, Xacmaz, Xizi, Xocali, Xocavand, Yardimli, Yevlax, Zangilan, Zaqatala, Zardab

cities: Baku, Ganca, Lankaran, Mingacevir, Naftalan, Naxcivan (Nakhichevan), Saki, Sirvan, Sumqayit, Xankandi, Yevlax

" }, "Independence": { "text": "30 August 1991 (declared from the Soviet Union); 18 October 1991 (adopted by the Supreme Council of Azerbaijan)" }, "National holiday": { "text": "Republic Day (founding of the Democratic Republic of Azerbaijan), 28 May (1918)" }, "Constitution": { "history": { "text": "several previous; latest adopted 12 November 1995" }, "amendments": { "text": "proposed by the president of the republic or by at least 63 members of the National Assembly; passage requires at least 95 votes of Assembly members in two separate readings of the draft amendment six months apart and requires presidential approval after each of the two Assembly votes, followed by presidential signature; constitutional articles on the authority, sovereignty, and unity of the people cannot be amended; amended 2002, 2009, 2016" } }, "Legal system": { "text": "civil law system" }, "International law organization participation": { "text": "has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt" }, "Citizenship": { "citizenship by birth": { "text": "yes" }, "citizenship by descent only": { "text": "yes" }, "dual citizenship recognized": { "text": "no" }, "residency requirement for naturalization": { "text": "5 years" } }, "Suffrage": { "text": "18 years of age; universal" }, "Executive branch": { "chief of state": { "text": "President Ilham ALIYEV (since 31 October 2003); First Vice President Mehriban ALIYEVA (since 21 February 2017)" }, "head of government": { "text": "Prime Minister Ali ASADOV (since 8 October 2019); First Deputy Prime Minister Yaqub EYYUBOV (since June 2006)" }, "cabinet": { "text": "Council of Ministers appointed by the president and confirmed by the National Assembly" }, "elections/appointments": { "text": "president directly elected by absolute majority popular vote in 2 rounds (if needed) for a 7-year term; a single individual is eligible for unlimited terms; election last held on 11 April 2018 (next to be held in 2025); prime minister and first deputy prime minister appointed by the president and confirmed by the National Assembly; note - a constitutional amendment approved in a September 2016 referendum expanded the presidential term from 5 to 7 years; a separate constitutional amendment approved in the same referendum also introduced the post of first vice-president and additional vice-presidents, who are directly appointed by the president" }, "election results": { "text": "Ilham ALIYEV reelected president in first round; percent of vote - Ilham ALIYEV (YAP) 86%, Zahid ORUJ (independent) 3.1%, other 10.9%" }, "note": "note: OSCE observers noted shortcomings in the election, including a restrictive political environment, limits on fundamental freedoms, a lack of genuine competition, and ballot box stuffing" }, "Legislative branch": { "description": { "text": "unicameral National Assembly or Milli Mejlis (125 seats; members directly elected in single-seat constituencies by simple majority vote to serve 5-year terms)" }, "elections": { "text": "last held early on 9 February 2020 (next to be held in 2025)" }, "election results": { "text": "percent of vote by party - NA; seats by party - YAP 69, CSP 3, AVP 1, CUP 1, ADMP 1, PDR 1, Great Order 1, National Front Party 1, REAL 1, VP 1, Whole Azerbaijan Popular Front 1, party unknown 1, independent 41; composition - men 103, women 22, percent of women 17.6%" } }, "Judicial branch": { "highest courts": { "text": "Supreme Court (consists of the chairman, vice chairman, and 23 judges in plenum sessions and organized into civil, economic affairs, criminal, and rights violations chambers); Constitutional Court (consists of 9 judges)" }, "judge selection and term of office": { "text": "Supreme Court judges nominated by the president and appointed by the Milli Majlis; judges appointed for 10 years; Constitutional Court chairman and deputy chairman appointed by the president; other court judges nominated by the president and appointed by the Milli Majlis to serve single 15-year terms" }, "subordinate courts": { "text": "Courts of Appeal (replaced the Economic Court in 2002); district and municipal courts" } }, "Political parties and leaders": { "text": "Azerbaijan Democratic Enlightenment Party or ADMP [Elshan MASAYEV]
Civil Solidarity Party or CSP [Sabir RUSTAMKHANLI]
Civic Unity Party or CUP [Sabir HAJIYEV]
Great Order Party [Fazil MUSTAFA]
Islamic Party of Azerbaijan [Mavsum SAMADOV]
Musavat [Arif HAJILI]
Popular Front Party [Ali KARIMLI]
Motherland Party or AVP [Fazail AGAMALI]
National Front Party [Razi NURULLAYEV]
National Revival Movement Party [Faraj GULIYEV]
Party for Democratic Reforms or PDR [Asim MOLLAZADE]
Republican Alternative Party or REAL [Ilgar MAMMADOV]
Social Democratic Party [Ayaz MUTALIBOV]
Social Prosperity Party [Khanhusein KAZIMLI]
Unity Party or VP [Tahir KARIMLI]
Whole Azerbaijan Popular Front Party [Gudrat HASANGULIYEV]
Yeni (New) Azerbaijan Party or YAP [President Ilham ALIYEV]" }, "International organization participation": { "text": "ADB, BSEC, CD, CE, CICA, CIS, EAPC, EBRD, ECO, FAO, GCTU, GUAM, IAEA, IBRD, ICAO, ICC (NGOs), ICRM, IDA, IDB, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC (NGOs), MIGA, NAM, OAS (observer), OIC, OPCW, OSCE, PFP, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO (observer)" }, "Diplomatic representation in the US": { "chief of mission": { "text": "Ambassador Kahzar IBRAHIM (since 15 September 2021)" }, "chancery": { "text": "2741 34th Street NW, Washington, DC 20008" }, "telephone": { "text": "[1] (202) 337-3500" }, "FAX": { "text": "[1] (202) 337-5911" }, "email address and website": { "text": "
azerbaijan@azembassy.us; consul@azembassy.us

https://washington.mfa.gov.az/en" }, "consulate(s) general": { "text": "Los Angeles" } }, "Diplomatic representation from the US": { "chief of mission": { "text": "Ambassador Lee LITZENBERGER (since 12 March 2019)" }, "embassy": { "text": "111 Azadlig Avenue, AZ1007 Baku" }, "mailing address": { "text": "7050 Baku Place, Washington, DC 20521-7050" }, "telephone": { "text": "[994] (12) 488-3300" }, "FAX": { "text": "[994] (12) 488-3330" }, "email address and website": { "text": "
BakuACS@state.gov

https://az.usembassy.gov/" } }, "Flag description": { "text": "three equal horizontal bands of sky blue (top), red, and green; a vertical crescent moon and an eight-pointed star in white are centered in the red band; the blue band recalls Azerbaijan's Turkic heritage, red stands for modernization and progress, and green refers to Islam; the crescent moon and star are a Turkic insignia; the eight star points represent the eight Turkic peoples of the world" }, "National symbol(s)": { "text": "flames of fire; national colors: blue, red, green" }, "National anthem": { "name": { "text": "\"Azerbaijan Marsi\" (March of Azerbaijan)" }, "lyrics/music": { "text": "Ahmed JAVAD/Uzeyir HAJIBEYOV" }, "note": "note: adopted 1992; although originally written in 1919 during a brief period of independence, \"Azerbaijan Marsi\" did not become the official anthem until after the dissolution of the Soviet Union" }, "National heritage": { "total World Heritage Sites": { "text": "3 (all cultural)" }, "selected World Heritage Site locales": { "text": "Walled City of Baku, Gobustan Rock Art Cultural Landscape, Historic Center of Sheki" } } }, "Economy": { "Economic overview": { "text": "

Prior to the decline in global oil prices since 2014, Azerbaijan's high economic growth was attributable to rising energy exports and to some non-export sectors. Oil exports through the Baku-Tbilisi-Ceyhan Pipeline, the Baku-Novorossiysk, and the Baku-Supsa Pipelines remain the main economic driver, but efforts to boost Azerbaijan's gas production are underway. The expected completion of the geopolitically important Southern Gas Corridor (SGC) between Azerbaijan and Europe will open up another source of revenue from gas exports. First gas to Turkey through the SGC is expected in 2018 with project completion expected by 2020-21.

Declining oil prices caused a 3.1% contraction in GDP in 2016, and a 0.8% decline in 2017, highlighted by a sharp reduction in the construction sector. The economic decline was accompanied by higher inflation, a weakened banking sector, and two sharp currency devaluations in 2015. Azerbaijan’s financial sector continued to struggle. In May 2017, Baku allowed the majority state-owed International Bank of Azerbaijan (IBA), the nation’s largest bank, to default on some of its outstanding debt and file for restructuring in Azerbaijani courts; IBA also filed in US and UK bankruptcy courts to have its restructuring recognized in their respective jurisdictions.

Azerbaijan has made limited progress with market-based economic reforms. Pervasive public and private sector corruption and structural economic inefficiencies remain a drag on long-term growth, particularly in non-energy sectors. The government has, however, made efforts to combat corruption, particularly in customs and government services. Several other obstacles impede Azerbaijan's economic progress, including the need for more foreign investment in the non-energy sector and the continuing conflict with Armenia over the Nagorno-Karabakh region. While trade with Russia and the other former Soviet republics remains important, Azerbaijan has expanded trade with Turkey and Europe and is seeking new markets for non-oil/gas exports - mainly in the agricultural sector - with Gulf Cooperation Council member countries, the US, and others. It is also improving Baku airport and the Caspian Sea port of Alat for use as a regional transportation and logistics hub.

Long-term prospects depend on world oil prices, Azerbaijan's ability to develop export routes for its growing gas production, and its ability to improve the business environment and diversify the economy. In late 2016, the president approved a strategic roadmap for economic reforms that identified key non-energy segments of the economy for development, such as agriculture, logistics, information technology, and tourism. In October 2017, the long-awaited Baku-Tbilisi-Kars railway, stretching from the Azerbaijani capital to Kars in north-eastern Turkey, began limited service.

" }, "Real GDP (purchasing power parity)": { "Real GDP (purchasing power parity) 2020": { "text": "$138.51 billion note: data are in 2017 dollars (2020 est.)" }, "Real GDP (purchasing power parity) 2019": { "text": "$144.74 billion note: data are in 2017 dollars (2019 est.)" }, "Real GDP (purchasing power parity) 2018": { "text": "$141.24 billion note: data are in 2017 dollars (2018 est.)" }, "note": "note: data are in 2010 dollars" }, "Real GDP growth rate": { "Real GDP growth rate 2017": { "text": "0.1% (2017 est.)" }, "Real GDP growth rate 2016": { "text": "-3.1% (2016 est.)" }, "Real GDP growth rate 2015": { "text": "0.6% (2015 est.)" } }, "Real GDP per capita": { "Real GDP per capita 2020": { "text": "$13,700 note: data are in 2017 dollars (2020 est.)" }, "Real GDP per capita 2019": { "text": "$14,400 note: data are in 2017 dollars (2019 est.)" }, "Real GDP per capita 2018": { "text": "$14,200 note: data are in 2017 dollars (2018 est.)" }, "note": "note: data are in 2010 dollars" }, "GDP (official exchange rate)": { "text": "$48.104 billion (2019 est.)" }, "Inflation rate (consumer prices)": { "Inflation rate (consumer prices) 2019": { "text": "2.6% (2019 est.)" }, "Inflation rate (consumer prices) 2018": { "text": "2.3% (2018 est.)" }, "Inflation rate (consumer prices) 2017": { "text": "12.8% (2017 est.)" } }, "Credit ratings": { "Fitch rating": { "text": "BB+ (2016)" }, "Moody's rating": { "text": "Ba2 (2017)" }, "Standard & Poors rating": { "text": "BB+ (2016)" } }, "GDP - composition, by sector of origin": { "agriculture": { "text": "6.1% (2017 est.)" }, "industry": { "text": "53.5% (2017 est.)" }, "services": { "text": "40.4% (2017 est.)" } }, "GDP - composition, by end use": { "household consumption": { "text": "57.6% (2017 est.)" }, "government consumption": { "text": "11.5% (2017 est.)" }, "investment in fixed capital": { "text": "23.6% (2017 est.)" }, "investment in inventories": { "text": "0.5% (2017 est.)" }, "exports of goods and services": { "text": "48.7% (2017 est.)" }, "imports of goods and services": { "text": "-42% (2017 est.)" } }, "Agricultural products": { "text": "milk, wheat, potatoes, barley, tomatoes, watermelons, cotton, apples, maize, onions" }, "Industries": { "text": "petroleum and petroleum products, natural gas, oilfield equipment; steel, iron ore; cement; chemicals and petrochemicals; textiles" }, "Industrial production growth rate": { "text": "-3.8% (2017 est.)" }, "Labor force": { "text": "4.939 million (2019 est.)" }, "Labor force - by occupation": { "agriculture": { "text": "37%" }, "industry": { "text": "14.3%" }, "services": { "text": "48.9% (2014)" } }, "Unemployment rate": { "Unemployment rate 2017": { "text": "5% (2017 est.)" }, "Unemployment rate 2016": { "text": "5% (2016 est.)" } }, "Unemployment, youth ages 15-24": { "total": { "text": "12.4%" }, "male": { "text": "10.9%" }, "female": { "text": "14.2% (2019 est.)" } }, "Population below poverty line": { "text": "4.9% (2015 est.)" }, "Gini Index coefficient - distribution of family income": { "Gini Index coefficient - distribution of family income 2008": { "text": "33.7 (2008)" }, "Gini Index coefficient - distribution of family income 2001": { "text": "36.5 (2001)" } }, "Household income or consumption by percentage share": { "lowest 10%": { "text": "3.4%" }, "highest 10%": { "text": "27.4% (2008)" } }, "Budget": { "revenues": { "text": "9.556 billion (2017 est.)" }, "expenditures": { "text": "10.22 billion (2017 est.)" } }, "Budget surplus (+) or deficit (-)": { "text": "-1.6% (of GDP) (2017 est.)" }, "Public debt": { "Public debt 2017": { "text": "54.1% of GDP (2017 est.)" }, "Public debt 2016": { "text": "50.7% of GDP (2016 est.)" } }, "Taxes and other revenues": { "text": "23.5% (of GDP) (2017 est.)" }, "Fiscal year": { "text": "calendar year" }, "Current account balance": { "Current account balance 2017": { "text": "$1.685 billion (2017 est.)" }, "Current account balance 2016": { "text": "-$1.363 billion (2016 est.)" } }, "Exports": { "Exports 2020": { "text": "$15.21 billion note: data are in current year dollars (2020 est.)" }, "Exports 2019": { "text": "$23.63 billion note: data are in current year dollars (2019 est.)" }, "Exports 2018": { "text": "$25.48 billion note: data are in current year dollars (2018 est.)" } }, "Exports - partners": { "text": "Italy 28%, Turkey 15%, Israel 7%, Germany 5%, India 5% (2017)" }, "Exports - commodities": { "text": "crude petroleum, natural gas, refined petroleum, tomatoes, gold (2019)" }, "Imports": { "Imports 2020": { "text": "$15.54 billion note: data are in current year dollars (2020 est.)" }, "Imports 2019": { "text": "$17.71 billion note: data are in current year dollars (2019 est.)" }, "Imports 2018": { "text": "$17.71 billion note: data are in current year dollars (2018 est.)" } }, "Imports - partners": { "text": "United Kingdom 17%, Russia 17%, Turkey 12%, China 6% (2019)" }, "Imports - commodities": { "text": "gold, cars, refined petroleum, wheat, packaged medical supplies (2019)" }, "Reserves of foreign exchange and gold": { "Reserves of foreign exchange and gold 31 December 2017": { "text": "$6.681 billion (31 December 2017 est.)" }, "Reserves of foreign exchange and gold 31 December 2016": { "text": "$7.142 billion (31 December 2016 est.)" } }, "Debt - external": { "Debt - external 31 December 2017": { "text": "$17.41 billion (31 December 2017 est.)" }, "Debt - external 31 December 2016": { "text": "$13.83 billion (31 December 2016 est.)" } }, "Exchange rates": { "currency": { "text": "Azerbaijani manats (AZN) per US dollar -" }, "Exchange rates 2017": { "text": "1.723 (2017 est.)" }, "Exchange rates 2016": { "text": "1.5957 (2016 est.)" }, "Exchange rates 2015": { "text": "1.5957 (2015 est.)" }, "Exchange rates 2014": { "text": "1.0246 (2014 est.)" }, "Exchange rates 2013": { "text": "0.7844 (2013 est.)" } } }, "Energy": { "Electricity access": { "electrification - total population": { "text": "100% (2020)" } }, "Electricity - production": { "text": "23.57 billion kWh (2016 est.)" }, "Electricity - consumption": { "text": "20.24 billion kWh (2016 est.)" }, "Electricity - exports": { "text": "265 million kWh (2015 est.)" }, "Electricity - imports": { "text": "114 million kWh (2016 est.)" }, "Electricity - installed generating capacity": { "text": "7.876 million kW (2016 est.)" }, "Electricity - from fossil fuels": { "text": "84% of total installed capacity (2016 est.)" }, "Electricity - from nuclear fuels": { "text": "0% of total installed capacity (2017 est.)" }, "Electricity - from hydroelectric plants": { "text": "14% of total installed capacity (2017 est.)" }, "Electricity - from other renewable sources": { "text": "2% of total installed capacity (2017 est.)" }, "Crude oil - production": { "text": "798,000 bbl/day (2018 est.)" }, "Crude oil - exports": { "text": "718,800 bbl/day (2015 est.)" }, "Crude oil - imports": { "text": "0 bbl/day (2015 est.)" }, "Crude oil - proved reserves": { "text": "7 billion bbl (1 January 2018 est.)" }, "Refined petroleum products - production": { "text": "138,900 bbl/day (2015 est.)" }, "Refined petroleum products - consumption": { "text": "100,000 bbl/day (2016 est.)" }, "Refined petroleum products - exports": { "text": "46,480 bbl/day (2015 est.)" }, "Refined petroleum products - imports": { "text": "5,576 bbl/day (2015 est.)" }, "Natural gas - production": { "text": "16.96 billion cu m (2017 est.)" }, "Natural gas - consumption": { "text": "10.34 billion cu m (2017 est.)" }, "Natural gas - exports": { "text": "8.042 billion cu m (2017 est.)" }, "Natural gas - imports": { "text": "2.095 billion cu m (2017 est.)" }, "Natural gas - proved reserves": { "text": "991.1 billion cu m (1 January 2018 est.)" } }, "Communications": { "Telephones - fixed lines": { "total subscriptions": { "text": "1,652,688 (2020)" }, "subscriptions per 100 inhabitants": { "text": "16.3 (2020 est.)" } }, "Telephones - mobile cellular": { "total subscriptions": { "text": "10,344,300 (2020)" }, "subscriptions per 100 inhabitants": { "text": "102 (2020 est.)" } }, "Telecommunication systems": { "general assessment": { "text": "a landlocked country with historically poor infrastructure; state control of telecom systems; progress with Digital Hub project despite economic contraction in 2020; government launched e-school and e-service programs; risk of delays in infrastructure and launch of new technologies, including 5G due to slow market demand; LTE supports most data traffic while mobile broadband subscribership grows rapidly; fixed-line broadband market has slight upward trend; Internet access is expensive and suffers from outages and intentional government disruption; importer of broadcasting equipment from Russia (2020)" }, "domestic": { "text": "teledensity of some 16 fixed-lines per 100 persons; mobile-cellular teledensity of 102 telephones per 100 persons; satellite service connects Baku to a modern switch in its exclave of Naxcivan (Nakhchivan) (2020)" }, "international": { "text": "country code - 994; the TAE fiber-optic link transits Azerbaijan providing international connectivity to neighboring countries; the old Soviet system of cable and microwave is still serviceable; satellite earth stations - 2 (2019)" }, "note": "note: the COVID-19 pandemic continues to have a significant impact on production and supply chains globally; since 2020, some aspects of the telecom sector have experienced downturn, particularly in mobile device production; many network operators delayed upgrades to infrastructure; progress towards 5G implementation was postponed or slowed in some countries; consumer spending on telecom services and devices was affected by large-scale job losses and the consequent restriction on disposable incomes; the crucial nature of telecom services as a tool for work and school from home became evident, and received some support from governments" }, "Broadcast media": { "text": "3 state-run and 1 public TV channels; 4 domestic commercial TV stations and about 15 regional TV stations; cable TV services are available in Baku; 1 state-run and 1 public radio network operating; a small number of private commercial radio stations broadcasting; local FM relays of Baku commercial stations are available in many localities; note - all broadcast media is pro-government, and most private broadcast media outlets are owned by entities directly linked to the government" }, "Internet country code": { "text": ".az" }, "Internet users": { "total": { "text": "8.26 million (2021 est.)" }, "percent of population": { "text": "81.1% (2019 est.)" } }, "Broadband - fixed subscriptions": { "total": { "text": "1,995,474 (2020)" }, "subscriptions per 100 inhabitants": { "text": "19.68 (2020 est.)" } } }, "Transportation": { "National air transport system": { "number of registered air carriers": { "text": "42 (2020)" }, "inventory of registered aircraft operated by air carriers": { "text": "44" }, "annual passenger traffic on registered air carriers": { "text": "2,279,546 (2018)" }, "annual freight traffic on registered air carriers": { "text": "44.09 million mt-km (2018)" } }, "Civil aircraft registration country code prefix": { "text": "4K" }, "Airports": { "total": { "text": "23 (2020)" } }, "Airports - with paved runways": { "total": { "text": "30" }, "over 3,047 m": { "text": "5" }, "2,438 to 3,047 m": { "text": "5" }, "1,524 to 2,437 m": { "text": "13" }, "914 to 1,523 m": { "text": "4" }, "under 914 m": { "text": "3 (2017)" } }, "Airports - with unpaved runways": { "total": { "text": "7" }, "under 914 m": { "text": "7 (2013)" } }, "Heliports": { "text": "1 (2012)" }, "Pipelines": { "text": "89 km condensate, 3890 km gas, 2446 km oil (2013)" }, "Railways": { "total": { "text": "2,944 km (2017)" }, "broad gauge": { "text": "2,944.3 km 1.520-m gauge (approx. 1,767 km electrified) (2017)" } }, "Roadways": { "total": { "text": "24,981 km (2013)" }, "note": "note: total roadway length has increased significantly and continues to grow due to the recovery of Armenian-held territories and related reconstruction efforts, respectively; no updated figure is currently available" }, "Merchant marine": { "total": { "text": "305" }, "by type": { "text": "general cargo 38, oil tanker 43, other 224 (2021)" } }, "Ports and terminals": { "major seaport(s)": { "text": "Baku (Baki) located on the Caspian Sea" } } }, "Military and Security": { "Military and security forces": { "text": "Land Forces (Combined Arms Army), Air Forces, Navy Forces; Ministry of Internal Affairs: State Border Service (includes Coast Guard), Internal Security Troops (2021)" }, "Military expenditures": { "Military Expenditures 2020": { "text": "5.4% of GDP (2020 est.)" }, "Military Expenditures 2019": { "text": "3.8% of GDP (2019 est.)" }, "Military Expenditures 2018": { "text": "3.6% of GDP (2018 est.)" }, "Military Expenditures 2017": { "text": "3.8% of GDP (2017 est.)" }, "Military Expenditures 2016": { "text": "3.7% of GDP (2016 est.)" } }, "Military and security service personnel strengths": { "text": "information varies; approximately 65,000 total active troops (55,000 Army; 2,000 Navy; 8,000 Air Force); approximately 15,000 Ministry of Internal Affairs troops (2021)" }, "Military equipment inventories and acquisitions": { "text": "the inventory of the Azerbaijan military is comprised mostly of Russian and Soviet-era weapons systems with a smaller mix of equipment from other countries; since 2010, Russia is the leading supplier of arms to Azerbaijan, followed by Israel and Turkey (2021)" }, "Military service age and obligation": { "text": "men age 18-35 years for compulsory military service; service obligation 18 months (non-university graduate) or 12 months (university graduates); 17 years of age for voluntary service (men and women); 17-year-olds are considered to be on active service at cadet military schools (2021)", "note": "note - as of 2018, women made up an estimated 3% of the active duty military" }, "Military - note": { "text": "since November 2020, Russia has deployed about 2,000 peacekeeping troops to the area in and around Nagorno-Karabakh as part of a cease-fire agreement between Armenia and Azerbaijan; fighting erupted between the two countries over the Nagorno-Karabakh region in September of 2020; Nagorno-Karabakh lies within Azerbaijan but has been under control of ethnic Armenian forces (the \"Nagorno-Karabakh Defense Army\") backed by Armenia since a separatist war there ended in 1994; six weeks of fighting resulted in about 6,000 deaths and ended after Armenia ceded swathes of Nagorno-Karabakh territory; tensions remained high through 2021, and both sides have accused the other of provocations since the fighting ended; Armenia has accused Azerbaijani forces of a series of border intrusions and of seizing pockets of territory" } }, "Terrorism": { "Terrorist group(s)": { "text": "Islamic State of Iraq and ash-Sham (ISIS)", "note": "note: details about the history, aims, leadership, organization, areas of operation, tactics, targets, weapons, size, and sources of support of the group(s) appear(s) in Appendix-T" } }, "Transnational Issues": { "Disputes - international": { "text": "

Azerbaijan, Kazakhstan, and Russia ratified the Caspian seabed delimitation treaties based on equidistance, while Iran continues to insist on a one-fifth slice of the sea; the dispute over the break-away Nagorno-Karabakh region and the Armenian military occupation of surrounding lands in Azerbaijan remains the primary focus of regional instability; residents have evacuated the former Soviet-era small ethnic enclaves in Armenia and Azerbaijan; local border forces struggle to control the illegal transit of goods and people across the porous, undemarcated Armenian, Azerbaijani, and Georgian borders; bilateral talks continue with Turkmenistan on dividing the seabed and contested oilfields in the middle of the Caspian

" }, "Refugees and internally displaced persons": { "IDPs": { "text": "735,000 (conflict with Armenia over Nagorno-Karabakh; IDPs are mainly ethnic Azerbaijanis but also include ethnic Kurds, Russians, and Turks predominantly from occupied territories around Nagorno-Karabakh; includes IDPs' descendants, returned IDPs, and people living in insecure areas and excludes people displaced by natural disasters; around half the IDPs live in the capital Baku) (2020)" }, "stateless persons": { "text": "3,585 (mid-year 2021)" } }, "Trafficking in persons": { "current situation": { "text": "human traffickers exploit domestic and foreign victims in Azerbaijan and exploit Azerbaijanis abroad; Azerbaijani men and boys experience forced labor domestically and in Qatar, Russia, and the UAE; Azerbaijani women and children are subjected to sex trafficking domestically and in Iran, Malaysia, Pakistan, Qatar, Russia, Turkey, and the UAE; Azerbaijan is a destination country for sex and forced labor trafficking victims from China, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan; some children are exploited domestically for forced begging and forced labor as roadside vendors and at tea houses and wedding venues" }, "tier rating": { "text": "Tier 2 Watch List — Azerbaijan does not fully meet the minimum standards for the elimination of trafficking but is making significant efforts to do so; more traffickers were convicted and judges received guidance to issue stricter sentences; the government significantly increased funding for victim protection by establishing grants for civil society; however, authorities identified fewer victims than in the previous year, did not regularly screen vulnerable populations, and continued to lack proactive identification methods, resulting in victims being penalized for unlawful acts traffickers compelled them to commit (2020)" } }, "Illicit drugs": { "text": "limited illicit cultivation of cannabis and opium poppy, mostly for CIS consumption; small government eradication program; transit point for Southwest Asian opiates bound for Russia and to a lesser extent the rest of Europe" } } }