Azerbaijan - statistics & facts
Leveraging the Caspian Sea's resources, the economy of Azerbaijan is dependent on energy exports. The country's government aims to achieve future growth by improving infrastructure and developing regions other than Baku, the capital and the largest city. Located in the eastern part of the South Caucasus, Azerbaijan is often called the "Land of Fire" due to natural eternal flames, such as those found at the ancient Ateshgah monument in the region of Surakhani. The total population is estimated to be around 10 million, with about half living in urban areas. In 2023, the population growth rate reached its lowest level over the past decade, at a negative 0.3 percent.
The largest sector of Azerbaijan’s economy is industry — due to its large oil and gas exports — with a 50-percent share of GDP, compared to a lower share held by services and significantly less generated by agriculture. Even though the industrial sector makes up most of GDP, it takes up the lowest share in total employment, with the majority of the population working in services or agriculture.
Azerbaijan’s abundant natural resources, strategic geographical location, and strong industrial sector provide a solid foundation for future economic growth. By diversifying its economy and enhancing trade partnerships, the country's governmentdiana aims to promote both economic development and human rights.
Azerbaijan’s economic outlook
The gross domestic product (GDP) of Azerbaijan is expected to increase steadily from 2024 to 2029, growing by a total of 18.7 billion U.S. dollars. In 2029, GDP is projected to reach a record high of 97.4 billion U.S. dollars. The average inflation rate is forecast to increase slightly in the same period.The largest sector of Azerbaijan’s economy is industry — due to its large oil and gas exports — with a 50-percent share of GDP, compared to a lower share held by services and significantly less generated by agriculture. Even though the industrial sector makes up most of GDP, it takes up the lowest share in total employment, with the majority of the population working in services or agriculture.
Main trade partners of Azerbaijan
Azerbaijan reports a positive trade balance, even though it decreased by 30 percent in 2023. Trade with Europe and Turkey is getting stronger, particularly after the Russian invasion of Ukraine. Currently, the country's most important export destination is Italy, with Italy accounting for almost half of Azerbaijan’s exports. The leading import partners are Turkey, Russia, and China.Azerbaijan’s abundant natural resources, strategic geographical location, and strong industrial sector provide a solid foundation for future economic growth. By diversifying its economy and enhancing trade partnerships, the country's governmentdiana aims to promote both economic development and human rights.
