Solid macroeconomic fundamentals but high structural risks

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 January 2024.

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GDP USD78.7bn (World ranking 73, World Bank 2022)
Population 10.2mn (World ranking 91, World Bank 2022)
Form of state Presidential republic
Head of state Ilham ALIYEV (President)
Next elections 2025, 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
  • Conflict between Azerbaijan and Armenia over the Nagorno Karabakh enclave
  • 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 2022)

Exports Rank Imports
Italy 50.0%
1
18.8% Russian Federation
Türkiye 5.6%
2
15.8% Türkiye
Greece 5.0%
3
14.4% China
Spain 3.2%
4
4.5% Germany
Germany 3.1%
5
3.5% Turkmenistan

Trade structure by product

(% of total, 2022)

Exports Rank Imports
Petroleum, petroleum products and related materials 50.5%
1
9.0% Road Vehicles
Gas, natural and manufactured 39.5%
2
7.9% Petroleum, petroleum products and related materials
Vegetables and fruits 1.7%
3
5.2% Other industrial machinery and parts
Plastics in primary forms 0.9%
4
4.8% Iron and steel
Non-ferrous metals 0.7%
5
4.6% Cereals and cereal preparations
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