Data at glance of Azerbaijan - average on period

variable 1990-1999 2000-2007 2008-2009 2010-2019 2022 2023 2024 2025 2026
real gdp growth -2.6 16.94 7.15 0.89 1.4 4.2 1.4 2.2 2.5
CPI % 402.69 8.59 3.6 4.98 8.8 2.2 5.6 6.0 5.1
Unemployment rate 11.8 8.02 5.65 5.26 5.5 5.4 5.3 5.3 5.2
Debt/GDP % 16.68 8.09 4.85 14.43 21.8 21.6 20.1 20.0 20.0
Current account balance/GDP % -15.9 1.15 25.7 9.94 11.5 6.3 5.5 9.7 5.4

Data derived from World Economic Outlook Database. To see main macroeconomic indicator in graphs click here

History

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. Beginning in 1988, Azerbaijan and Armenia fought over the Nagorno-Karabakh region, which was populated largely by ethnic Armenians but incorporated into Soviet Azerbaijan as an autonomous oblast in the early 1920s. In the late Soviet period, an ethnic-Armenian separatist movement sought to end Azerbaijani control over the region. Fighting over Nagorno-Karabakh escalated after Armenia and Azerbaijan gained independence from the Soviet Union in 1991. By the time a ceasefire took effect in 1994, separatists with Armenian support controlled Nagorno‑Karabakh and seven surrounding Azerbaijani territories. After decades of cease-fire violations and sporadic flare-ups, a second sustained conflict began in 2020 when Azerbaijan tried to win back the territories it had lost in the 1990s. After significant Azerbaijani gains, Armenia returned the southern part of Nagorno-Karabakh and the surrounding territories to Azerbaijan. In September 2023, Azerbaijan took military action to regain the rest of Nagorno-Karabakh; after a conflict that lasted only one day, nearly the entire ethnic Armenian population of Nagorno-Karabakh fled to Armenia. Since gaining its independence in 1991, Azerbaijan has significantly reduced the poverty rate and has directed some revenue 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. The country’s leadership has remained in the ALIYEV family since Heydar ALIYEV, the most highly ranked Azerbaijani member of the Communist Party during the Soviet period, became president during the first Nagorno-Karabakh War in 1993.

Environment

Area: 86,600 sq km km2

Climate: dry, semiarid steppe

Natural resources: petroleum, natural gas, iron ore, nonferrous metals, bauxite

Ethnic characteristics

Groups: Azerbaijani 94.8%, other 1.8%; less than 1%: Talish, Russian, Avar, Sakhur, Tartar, Georgian, Jewish, Kurd<br><!--EndFragment --> (2019 est.)

Languages: Azerbaijani 96.1%, other 1.4%; less than 1%: Russian, Avar, Talyshi, Turkish, Tatar, Sakhur, Tat, Ukrainian, Georgian, Hebrew (2019 est.)

Religions: Muslim 97.3% (predominantly Shia), Christian 2.6%, other &lt;0.1, unaffiliated &lt;0.1 (2020 est.)

Government

Capital: Baku (Baki, Baky)

Government type: presidential republic

Executive branch

Chief of state: President Ilham ALIYEV (since 31 October 2003)

Head of government: Prime Minister Ali ASADOV (since 8 October 2019)

Legislative branch

Description: National Assembly (Milli Majlis) - unicameral

Economic Overview

upper-middle income, oil-dependent Caucasus economy; minimal economic diversification and dominance of state-owned enterprises; growth and fiscal consolidation supported by oil revenues, but risks remain from demand shocks; potential economic gains from Nagorno-Karabakh ceasefire; education investments to diversify and retain human capital

Industries

petroleum and petroleum products, natural gas, oilfield equipment; steel, iron ore; cement; chemicals and petrochemicals; textiles

GDP by sector: Agriculture: 5.7% (2024 est.), Industry: 42.6% (2024 est.), Services: 42.3% (2024 est.)

Trade

Export partners: Italy 37%, Turkey 19%, Israel 5%, Greece 4%, Russia 4% (2023)

Export commodities: crude petroleum, natural gas, refined petroleum, plastics, electricity (2023)

Import partners: Russia 17%, China 16%, Turkey 14%, Georgia 4%, Germany 4% (2023)

Import commodities: cars, crude petroleum, refined petroleum, broadcasting equipment, garments (2023)

Geography

Southwestern Asia, bordering the Caspian Sea, between Iran and Russia, with a small European portion north of the Caucasus range

Defence

Military expenditure: 2024: 5.1% of GDP (2024 est.)

Information derived from worldfactbook.io (Lupon Media), open successor to the CIA World Factbook. Data sourced from World Bank, IMF, UN and other international organizations.