Introduction Key Economic Facts Risk Assessment (Provided by Coface) Azerbaijan is a landlocked country in Southwestern Asia Income Level (by per capita Upper Middle Income Country rating: C - A very uncertain political and economic located at the crossroads of Eastern Europe and Western GNI): outlook and a business environment with many troublesome Asia. It is bounded by the Caspian Sea, Russia, Georgia, Level of Development: In Transition weaknesses can have a significant impact on corporate Armenia, and Iran. The government GDP, PPP (current international $150.76 billion (2019) system is a republic; the chief of state is $): payment behavior. Corporate default probability is high. the president, and the head of GDP growth (annual %): 2.22% (2019) Business Climate rating: C - The business environment is government is the prime minister. GDP per capita, PPP (current $15,041.26 (2019) difficult. Corporate financial information is often unavailable Azerbaijan is a mixed economic system; international $): and when available often unreliable. Debt collection is there has been some progress instituting market-based External debt stocks, total $15,840,362,634.90 (2019) unpredictable. The institutional framework has many reforms, but the structural economic system involves heavy (DOD, current US$): government planning. Manufacturing, value added (% 5.01% (2019) troublesome weaknesses. Intercompany transactions run of GDP): major risks in the difficult environments rated C. Current account balance (BoP, $4.36 billion (2019) Strengths current US$): • Well-endowed sovereign wealth fund thanks to Inflation, consumer prices 2.61% (2019) (annual %): hydrocarbon production, and the net external credit Labor force, total: 5,114,769 (2020) position of the State Unemployment, total (% of 5.96% (2020) • Significant gas potential in the Caspian Sea total labor force) (modeled ILO estimate): • Launch of gas exports to Europe via Turkey and Location: Western Asia Imports of goods and services $17.71 billion (2019) Greece at the end of 2020 Capital City: Baku (+4 GMT) (current US$): • Strategic position between Europe, Russia, and Chief of State: President Ilham Aliyev Exports of goods and services $23.63 billion (2019) China (current US$): Head of Govt.: Prime Minister Ali Asadov • Some institutional improvements (legal security, Currency: Azerbaijani manat (AZN) GDP Composition % Agriculture Services Industry Manufacturing reduction of petty corruption) Major Languages:
Azerbaijani (Azeri) (official) 92.5%, Russian 1.4%, Armenian Weaknesses 1.4%, other 4.7% (2009 est.)
• Poor economic diversification, high dependence on 37 49 Primary Religions:Muslim 96.9% (predominantly 6 5 hydrocarbons (40% of GDP, 90% of exports, and Shia), Christian 3%, other <.1, unaffiliated <.1 (2010 est.)
*Although Manufacturing is included in the Industry figures, it is also separately two-thirds of tax revenues), declining oil resources Calling Code: 994 reported because it plays a critical role in economy. • Anticompetitive market structures (multi-sectoral Rankings Voltage: 220 conglomerates with strong ties to the State) Index Rank • Fragile, opaque, and dollarized banking system (32% Key Websites Corruption Perceptions Index 126 / 180 of loans and 59% of deposits), underdeveloped credit EY Globalization Index 51 / 60 Main Government Page: en.president.az to the private sector (13% of GDP) Global Competitiveness Index 57 / 141 Commerce Ministry: economy.gov.az Global Enabling Trade Index 71 / 136 • Poor governance (corruption, repression, money Export Promotion Agency: azpromo.az Index of Economic Freedom 59 / 179 laundering, the politicization of the judicial system) Investment Promotion azpromo.az Agency: Inward FDI Potential Index 64 / 139 • Armed conflict with Armenia around the enclave of KOF Index of Globalization 90 / 185 Nagorno-Karabakh may give rise to occasional Networked Readiness Index (NRI) 53 / 139 clashes, even after the ceasefire of 9 November 2020 Open Budget Index 77 / 115 U.S. Embassy 111 Azadlig Prospecti AZ1007 Baku, Azerbaijan (+994 12) 488-3320 https://az.usembassy.govCountry Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV