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of mission: Ambassador Yashar ALIYEV chancery: 2741 34th Street NW, Washington, DC 20008 telephone: [1] (202) 337–3500 FAX: [1] (202) 337–5911 Consulate(s) general: Los Angeles

      Diplomatic representation from the US:

      chief of mission: Ambassador Anne E. DERSE embassy: 83 Azadlig Prospecti, Baku AZ1007 mailing address: American Embassy Baku, US Department of State, 7050 Baku Place, Washington, DC 20521–7050 telephone: [994] (12) 4980–335 through 337 FAX: [994] (12) 4656–671

      Flag description:

      three equal horizontal bands of blue (top), red, and green; a crescent and eight-pointed star in white are centered in red band

      Economy

       Azerbaijan

      Economy - overview:

      Azerbaijan's high economic growth in 2006 and 2007 is attributable to large and growing oil exports. Azerbaijan's oil production declined through 1997, but has registered an increase every year since. Negotiation of production-sharing arrangements (PSAs) with foreign firms, which have committed $60 billion to long-term oilfield development, should generate the funds needed to spur future industrial development. Oil production under the first of these PSAs, with the Azerbaijan International Operating Company, began in November 1997. A consortium of Western oil companies began pumping 1 million barrels a day from a large offshore field in early 2006, through a $4 billion pipeline it built from Baku to Turkey's Mediterranean port of Ceyhan. By 2010 revenues from this project will double the country's current GDP. Azerbaijan shares all the formidable problems of the former Soviet republics in making the transition from a command to a market economy, but its considerable energy resources brighten its long-term prospects. Baku has only recently begun making progress on economic reform, and old economic ties and structures are slowly being replaced. Several other obstacles impede Azerbaijan's economic progress: the need for stepped up foreign investment in the non-energy sector, the continuing conflict with Armenia over the Nagorno-Karabakh region, pervasive corruption, and elevated inflation. Trade with Russia and the other former Soviet republics is declining in importance, while trade is building with Turkey and the nations of Europe. Long-term prospects will depend on world oil prices, the location of new oil and gas pipelines in the region, and Azerbaijan's ability to manage its energy wealth.

      GDP (purchasing power parity):

      $64.66 billion (2007 est.)

      GDP (official exchange rate):

      $31.32 billion (2007 est.)

      GDP - real growth rate:

      23.4% (2007 est.)

      GDP - per capita (PPP):

      $8,000 (2007 est.)

      GDP - composition by sector:

      agriculture: 6.2% industry: 63.3% services: 30.5% (2007 est.)

      Labor force:

      5.243 million (2007 est.)

      Labor force - by occupation:

      agriculture: 41% industry: 7% services: 52% (2001)

      Unemployment rate:

      1% official rate (2007 est.)

      Population below poverty line:

      24% (2005 est.)

      Household income or consumption by percentage share:

      lowest 10%: 3.1% highest 10%: 29.5% (2001)

      Distribution of family income - Gini index:

      36.5 (2001)

      Investment (gross fixed):

      20% of GDP (2007 est.)

      Budget:

      revenues: $6.755 billion expenditures: $8.572 billion (2007 est.)

      Fiscal year:

      calendar year

      Public debt:

      6.7% of GDP (2007 est.)

      Inflation rate (consumer prices):

      16.7% (2007 est.)

      Central bank discount rate:

      13% (31 December 2007)

      Commercial bank prime lending rate:

      19.13% (31 December 2007)

      Stock of money:

      $4.261 billion (31 December 2007)

      Stock of quasi money:

      $2.593 billion (31 December 2007)

      Stock of domestic credit:

      $5.726 billion (31 December 2007)

      Agriculture - products:

      cotton, grain, rice, grapes, fruit, vegetables, tea, tobacco; cattle, pigs, sheep, goats

      Industries:

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

      Industrial production growth rate:

      25% (2007 est.)

      Electricity - production:

      23.8 billion kWh (2007 est.)

      Electricity - consumption:

      27.5 billion kWh (2007 est.)

      Electricity - exports:

      800 million kWh (2007 est.)

      Electricity - imports:

      500 million kWh (2007 est.)

      Electricity - production by source:

      fossil fuel: 89.7% hydro: 10.3% nuclear: 0% other: 0% (2001)

      Oil - production:

      1.099 million bbl/day (2008 est.)

      Oil - consumption:

      160,000 bbl/day (2007 est.)

      Oil - exports:

      795,600 bbl/day (2007 est.)

      Oil - imports:

      4,267 bbl/day (2005)

      Oil - proved reserves:

      7 billion bbl (1 January 2008 est.)

      Natural gas - production:

      9.77 billion cu m (2007 est.)

      Natural gas - consumption:

      9.77 billion cu m (2007 est.)

      Natural gas - exports:

      0 cu m (2007 est.)

      Natural gas - imports:

      0 cu m (2005)

      Natural gas - proved reserves:

      849.5 billion cu m (1 January 2008 est.)

      Current account balance:

      $9.019 billion (2007 est.)

      Exports:

      $21.27 billion f.o.b. (2007 est.)

      Exports - commodities:

      oil and gas 90%, machinery, cotton, foodstuffs

      Exports - partners:

      Turkey 17.4%, Italy 15.5%, Russia 8.7%, Iran 7.2%, Indonesia 6.4%,

       Israel 6.1%, Georgia 5.7%, US 4.8%, France 4.3% (2007)

      Imports:

      $6.045 billion f.o.b. (2007 est.)

      Imports - commodities:

      machinery and equipment, oil products, foodstuffs, metals, chemicals

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