Mean graduate pay was $5.76 per manhour in 2010. The following table shows the main economic indicators in 1980–2017. Source: IMF For more than a century the backbone of the Azerbaijani economy has been petroleum, which represented 50 percent of Azerbaijan's GDP in 2005, and is projected to double to almost 125 percent of GDP in 2007.
The country was a well-known tourist spot in the 1980s.
However, the fall of the Soviet Union, and the First Nagorno-Karabakh War during the 1988–1994 period, damaged the tourist industry and the image of Azerbaijan as a tourist destination. It was not until the 2000s that the tourism industry began to recover, and the country has since experienced a high rate of growth in the number of tourist visits and overnight stays.
With a history of industrial development of more than 100 years, Azerbaijan proved to be a leading nation in the Southern Caucasus throughout the turmoil of the Soviet Union collapse in the early 1990s until nowadays. ===Republic era=== Oil remains the most prominent product of Azerbaijan's economy with cotton, natural gas and agriculture products contributing to its economic growth over the last five years.
An obstacle to economic progress, including stepped up foreign investment, is the continuing conflict with Armenia over the Nagorno-Karabakh region. In 1992, Azerbaijan became member of the Economic Cooperation Organization.
In September 1994, a 30-year contract was signed between the State Oil Company of Azerbaijan Republic (SOCAR) and 13 oil companies, among them Amoco, BP, ExxonMobil, Lukoil and Statoil.
Oil production under the first of these PSAs, with the Azerbaijan International Operating Company, began in November 1997 and now is about 500,000 barrels per day.
The national currency, the Azerbaijani manat, was stable in 2000, depreciating 3.8% against the dollar.
The budget deficit equaled 1.3% of GDP in 2000. Progress on economic reform has generally lagged behind macroeconomic stabilization.
In August 2000, the government launched a second-stage privatization program, in which many large state enterprises will be privatized.
Diversification of the economy into manufacturing industries remains a long-term issue. As of late 2000s, the defense industry of Azerbaijan has emerged as an autonomous entity with a growing defense production capability.
However, the fall of the Soviet Union, and the First Nagorno-Karabakh War during the 1988–1994 period, damaged the tourist industry and the image of Azerbaijan as a tourist destination. It was not until the 2000s that the tourism industry began to recover, and the country has since experienced a high rate of growth in the number of tourist visits and overnight stays.
Since 2001, the economic activity in the country is regulated by the Ministry of Economy of Azerbaijan Republic. ==Economic history of Azerbaijan== ===Modern era=== Throughout the Soviet period, Azerbaijan had always been less developed industrially than Armenia and Georgia, two neighboring Transcaucasia countries but also less diversified, as a result of slow investment in the non-oil sector.
In March 2001, Azerbaijan concluded a natural gas agreement with Turkey, providing a future export market for Azerbaijan. Azerbaijan has concluded 21 production-sharing agreements with various oil companies.
In 2002, the Azerbaijani merchant marine had 54 ships.
Since 2002, important stages of restructuring of the banking system have started to be carried out.
Taking into consideration the entry of big oil revenues in the country, as a logical result of successful oil strategy, and in this base, as the banks were ready to an effective transfer of their financial resources to the strategic goals, development strategy was made for 2002–2005. By 1 April 2010, 47 banks, 631 bank branches function in Azerbaijan.
Azerbaijan also plays a major role in the EU-sponsored Silk Road Project. In 2002, the Azerbaijani government established the Ministry of Transport with a broad range of policy and regulatory functions.
The transition to oil production led to remarkable growth figures as projects came online; reaching 26.4% in 2005 (second highest GDP growth in the world in 2005 only to Equatorial Guinea) and 34.6% in 2006 (world highest) before subsiding to 10.8% and 9.3% in 2008 and 2009 respectively.
Mean graduate pay was $5.76 per manhour in 2010. The following table shows the main economic indicators in 1980–2017. Source: IMF For more than a century the backbone of the Azerbaijani economy has been petroleum, which represented 50 percent of Azerbaijan's GDP in 2005, and is projected to double to almost 125 percent of GDP in 2007.
The transition to oil production led to remarkable growth figures as projects came online; reaching 26.4% in 2005 (second highest GDP growth in the world in 2005 only to Equatorial Guinea) and 34.6% in 2006 (world highest) before subsiding to 10.8% and 9.3% in 2008 and 2009 respectively.
An export pipeline that transports Caspian oil to the Mediterranean from Baku through Tbilisi, Georgia to Ceyhan, Turkey (the Baku-Tbilisi-Ceyhan Pipeline) became operational in 2006.
The Baku-Tbilisi-Ceyhan pipeline (BTC) became operational in May 2006 and extends more than 1,774 kilometers through the territories of Azerbaijan, Georgia and Turkey.
The South Caucasus Pipeline, also stretching through the territory of Azerbaijan, Georgia and Turkey, became operational at the end of 2006 and offers additional gas supplies to the European market from the Shah Deniz gas field.
Mean graduate pay was $5.76 per manhour in 2010. The following table shows the main economic indicators in 1980–2017. Source: IMF For more than a century the backbone of the Azerbaijani economy has been petroleum, which represented 50 percent of Azerbaijan's GDP in 2005, and is projected to double to almost 125 percent of GDP in 2007.
At the beginning of 2007 there were of utilized agricultural area.
The government estimates that profits from the information technology and communication industry will grow and become comparable with those from oil production. Azerbaijan has a large and steadily growing Internet sector, mostly uninfluenced by the financial crisis of 2007–2008; rapid growth is forecast for at least five more years. The country has also been making progress in developing its telecoms sector.
It implemented an E-Government portal as well. A single-window system was established by a decree of the Azerbaijani President issued in 2007, 30 April, in order to simplify export-import procedures, innovate customs services, and improve the trade environment.
The transition to oil production led to remarkable growth figures as projects came online; reaching 26.4% in 2005 (second highest GDP growth in the world in 2005 only to Equatorial Guinea) and 34.6% in 2006 (world highest) before subsiding to 10.8% and 9.3% in 2008 and 2009 respectively.
After this amendment, all of Azerbaijan's 29 customs checkpoints started to implement new single window system. According to the Presidential Decree (11 November 2008), the "single window" principle started to be applied from 1 January 2009 on the inspection of goods and transportation at the border checkpoints.
Customs Committee established a commission working on the implementation of "single window" principle in customs agencies on 18 November 2008 based on the Presidential Decree of 11 November 2008.
Foreign investment accounts for around half of that amount. In 2008, Azerbaijan was cited as the top reformer by the World Bank's Doing Business report: According to World Bank's Doing Business report 2019, Azerbaijan improved its position in the Ease of doing business rank from 57 to 25, as well as ranked 4th among the top 10 improvers.
The transition to oil production led to remarkable growth figures as projects came online; reaching 26.4% in 2005 (second highest GDP growth in the world in 2005 only to Equatorial Guinea) and 34.6% in 2006 (world highest) before subsiding to 10.8% and 9.3% in 2008 and 2009 respectively.
As of 2009, there were 1,397,000 main telephone lines and 1,485,000 internet users.
Azerbaijan started to implement this system in 2009.
In the first phase, the government realized customs clearance system on the process of border crossing to country beginning from January 1, 2009.
After this amendment, all of Azerbaijan's 29 customs checkpoints started to implement new single window system. According to the Presidential Decree (11 November 2008), the "single window" principle started to be applied from 1 January 2009 on the inspection of goods and transportation at the border checkpoints.
Technological scheme determining the sequence of issuance of "permit" certificates was approved by the Customs Committee on 22 December 2009.
The "single window" principle has been applied on migration management processes starting from 1 July 2009 according to the Decree. ==Business environment== As of October 2014, Azerbaijan holds the highest foreign investment per capita among the Commonwealth of Independent States (CIS) countries.
Eastern Caspian producers in Kazakhstan also have expressed interest in accessing this pipeline to transport a portion of their production. In 2010, Azerbaijan entered into the top eight biggest oil suppliers to EU countries with €9.46 billion.
In 2011, the amount of foreign investments in Azerbaijan was $20 billion, a 61% increase from 2010.
Mean graduate pay was $5.76 per manhour in 2010. The following table shows the main economic indicators in 1980–2017. Source: IMF For more than a century the backbone of the Azerbaijani economy has been petroleum, which represented 50 percent of Azerbaijan's GDP in 2005, and is projected to double to almost 125 percent of GDP in 2007.
Taking into consideration the entry of big oil revenues in the country, as a logical result of successful oil strategy, and in this base, as the banks were ready to an effective transfer of their financial resources to the strategic goals, development strategy was made for 2002–2005. By 1 April 2010, 47 banks, 631 bank branches function in Azerbaijan.
As of 1 April 2010, bank deposits of population were equal to 2,4 billion AZN.
As of 1 April 2010, bank credits to customers is 8.5 bn AZN, which makes 70.5% of bank assets.
Broad gauge railways in 2010 stretched for and electrified railways numbered .
By 2010, there were 35 airports and one heliport. ===Regulation=== Single window system shares needed information through a single gateway with all organizations serving in trade field, as well as abolishes useless processes and raises the effectiveness of cooperation among different parties.
The real GDP growth rate for 2011 was expected at 3.7% but had dropped to 0.1%. Large oil reserves are a major contributor to Azerbaijan's economy.
In 2011, the amount of foreign investments in Azerbaijan was $20 billion, a 61% increase from 2010.
According to Minister of Economic Development of Azerbaijan, Shahin Mustafayev, in 2011, "$15.7 billion was invested in the non-oil sector, while the rest in the oil sector." In 2012, because of its economic performance after the Soviet breakup, Azerbaijan was predicted to become "Tiger of Caucasus".
Then it was expanded to Baku and Sumgayit in 2011.
According to Minister of Economic Development of Azerbaijan, Shahin Mustafayev, in 2011, "$15.7 billion was invested in the non-oil sector, while the rest in the oil sector." In 2012, because of its economic performance after the Soviet breakup, Azerbaijan was predicted to become "Tiger of Caucasus".
In 2012, Globalization and World Cities Research Network study ranked Baku as a Gamma-level global city. In 2015, Turkey and Azerbaijan agreed to boost mutual trade to US$15 billion by 2023. ==Macro-economic trend== The following is a chart of trend of gross domestic product of Azerbaijan at market prices with figures in USD. For purchasing power parity comparisons, the US dollar was exchanged at 1,565.88 Manats only.
The highest priority being; upgrading the transport network and transforming transportation services into one of the key comparative advantages of the country, as this would be highly conducive to the development of other sectors of the economy. In 2012, the construction of Kars–Tbilisi–Baku railway expected to provide transportation between Asia and Europe through connecting the railways of China and Kazakhstan in the east with Turkey's Marmaray to the European railway system in the west.
Customs code of the Republic of Azerbaijan was amended based on the inclusion of the article on single window system which became operative on January 1, 2012.
The "single window" principle has been applied on migration management processes starting from 1 July 2009 according to the Decree. ==Business environment== As of October 2014, Azerbaijan holds the highest foreign investment per capita among the Commonwealth of Independent States (CIS) countries.
In 2012, Globalization and World Cities Research Network study ranked Baku as a Gamma-level global city. In 2015, Turkey and Azerbaijan agreed to boost mutual trade to US$15 billion by 2023. ==Macro-economic trend== The following is a chart of trend of gross domestic product of Azerbaijan at market prices with figures in USD. For purchasing power parity comparisons, the US dollar was exchanged at 1,565.88 Manats only.
The rate of exchange (Azerbaijani manat per US$1) for 28 January 2016, was AZN 1.60. There is a complex relationship between Azerbaijan's balance of trade, inflation, measured by the consumer price index and the value of its currency.
Foreign investment accounts for around half of that amount. In 2008, Azerbaijan was cited as the top reformer by the World Bank's Doing Business report: According to World Bank's Doing Business report 2019, Azerbaijan improved its position in the Ease of doing business rank from 57 to 25, as well as ranked 4th among the top 10 improvers.
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