| 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
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.
Area: 86,600 sq km km2
Climate: dry, semiarid steppe
Natural resources: petroleum, natural gas, iron ore, nonferrous metals, bauxite
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 <0.1, unaffiliated <0.1 (2020 est.)
Capital: Baku (Baki, Baky)
Government type: presidential republic
Chief of state: President Ilham ALIYEV (since 31 October 2003)
Head of government: Prime Minister Ali ASADOV (since 8 October 2019)
Description: National Assembly (Milli Majlis) - unicameral
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
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.)
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)
Southwestern Asia, bordering the Caspian Sea, between Iran and Russia, with a small European portion north of the Caucasus range
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.