Benefiting from high oil and gas prices, but structural risk remains high
C3
SENSITIVE RISK FOR ENTERPRISE
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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Financing risk
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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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%
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1 |
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Türkiye
8.5%
![]() |
2 |
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Russian Federation
4.6%
![]() |
3 |
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Croatia
3.6%
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4 |
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Germany
3.5%
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5 |
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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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