Benefiting from high oil and gas prices, but structural risk remains high

C3

SENSITIVE RISK FOR ENTERPRISE

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Updated in March 2023.

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GDP USD 54.6bn (World ranking 86, World Bank 2021)
Population 10.1mn (World ranking 90, World Bank 2021)
Form of state Presidential republic
Head of state Ilham Aliyev (President)
Next elections 2025, presidential and legislative
  • Ample natural resources in the hydrocarbon sector
  • Adequate level of official foreign exchange reserves at the central bank
  • Substantial foreign currency assets in the State Oil Fund of Azerbaijan (SOFAZ)
  • Low public debt and sovereign net creditor status
  • High regional political instability, including the conflict between Azerbaijan and Armenia over the Nagorno Karabakh enclave
  • Authoritarian political regime
  • Government effectiveness and slow progress of structural reforms
  • Significant level of perceived corruption and weak protection of property rights
  • Huge dependence on oil and gas sector, creating substantial external vulnerability
  • Exchange rate risk
  • Weak banking system

Trade structure by destination/origin

(% of total, annual 2021)

Exports Rank Imports
Italy 43.8%
1
17.7% Russian Federation
Türkiye 8.5%
2
15.8% Türkiye
Russian Federation 4.6%
3
14.0% China
Croatia 3.6%
4
5.4% Germany
Germany 3.5%
5
4.0% Ukraine

Trade structure by product

(% of total, 2021)

Exports Rank Imports
Petroleum, petroleum products and related materials 65.9%
1
9.7% Road Vehicles
Gas, natural and manufactured 21.3%
2
7.9% Other industrial machinery and parts
Vegetables and fruits 3.3%
3
5.3% Electrical machinery, apparatus and appliances, n.e.s.
Plastics in primary forms 2.0%
4
5.1% Iron and steel
Non-ferrous metals 1.1%
5
4.5% Medicinal and pharmaceutical products
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