Azerbaijan - Country Commercial Guide
Market Overview
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Azerbaijan’s GDP totaled $78.7 billion in 2022, an increase of 4.6 percent from 2021.  During this period, the country’s non-oil GDP increased by 9.1% while oil GDP decreased by 2.7.  Industry accounted for 51.1% of GDP, trade and automotive repair for 8.2%, transport and logistics for 6%, construction for 4.8%, agriculture, forestry and fisheries for 4.8%, hospitality services for 1.6%, information and communications for 1.4% and taxes for 7.4%.  In 2022, Azerbaijan reported a foreign trade increase of 55.4% of $52.7 billion.  At the same time, the country also reported an overall increase in total net exports, with exports increasing by 71.6% year-on-year to $38.1 billion, and imports increasing by 23.9% to $14.5 billion.  Top imports are iron and steel, machinery, vehicles, and food products (mostly meat and dairy).  The trade turnover between the United States and Azerbaijan was $570.16 million 2022, a 19% decrease year-on-year.  Azerbaijan’s top export destinations in 2022 were Italy, Türkiye, Israel, and India.

Azerbaijan’s economy is anchored in oil and gas production, which accounted for roughly 47.8% of the country’s GDP and over 92.5 % of export revenue in 2022.  The Southern Gas Corridor (SGC) pipeline delivered 11.4 bcm of Azeri gas to Türkiye and onwards to European markets in 2022.  Azerbaijan has significant wind and solar potential, and the Azerbaijani government is working to expand its renewables sector.  By 2030, Azerbaijan plans to install 1500 MW in renewables capacity, in part to support future export of green electricity and green hydrogen to European markets.  

Currently, work is underway to restore Azerbaijan’s returned territories.  In 2022 the government allocated $2.5 billion for reconstruction works, including restoration of damaged infrastructure (electricity, gas, water, communications, roads, education, health, etc.), as well as cultural and historical monuments.

Azerbaijan continues to promote diversification of its economy away from hydrocarbons, and is looking to increase the green energy, agriculture, logistics, tourism, and information/communication technology (ICT) sectors.  Azerbaijan is also taking steps toward more sustainable energy production in the returned territories. 

The government heavily subsidizes machinery and other agricultural inputs, targeting hazelnuts, rice, citrus fruits, tea, tobacco, and cotton.  Azerbaijan continues to develop its north-south and east-west trade and transit corridors.  The large increase in trade on the Middle Corridor is serving to turn the Port of Alat (Baku International Sea Port) and the adjacent Free Trade Zone (FTZ) into regional logistics and transportation hubs.  The FTZ is an extraterritorial, legally autonomous zone that seeks high value-added export focused manufacturing investors.  At least 75% of all items manufactured there are required to be exported.  While the FTZ lagged behind its Port of Baku neighbor in development this year, it saw the completion of its first phase and at the time of this guide has seven companies investing.   

To promote tourism, the government has waived visa requirements for several countries and simplified the application process, enabling U.S. citizens to apply for and receive an e-visa online within three hours by paying an expedite fee.  The government has also created several high-tech parks as part of its effort to bolster the ICT sector.

Political Environment

Visit the State Department’s website for background on the country’s political and economic environment.