The Azerbaijani economy shows very good economic results: the annual growth rate has been above 10% since 2000 : 11.2% in 2004, and 18.7% in 2005. The IMF forecasts a record growth in 2006, at 26.6%.
This good economic health relies on international oil prices : oil products account for 90% of the country's total exports. Azerbaijan holds 0.7% of the world oil reserves and this sector has experienced a sharp increase in the investments. However, the country have to face to several challenges : According to the IMF, 46% of the population live in poverty. The monthly wages is amounted 70 US dollars. The inflation rate is important (12% in 2005).
Appart from the hydrocarbons sector, there are hardly any investments. Azerbaijan wishes to attract numerous foreign investments in various sectors in order to diversify its economy. The agricultural sector is very important (19% of the GDP) but operating techniques remain little productive. The industrial sector is facing certain difficulties: the heavy industry is in a disastrous state and the manufacturing industrial production is fizzling out. The political and social situation of the country is tensed.
Azerbaijan's top export partners are Italy, France and Russia. The country's top import partners are Russia, United Kingdom and Turkey. Besides hydrocarbons, the country also exports machines, tobacco and cotton. Azerbaijan mainly imports machines, hydrocarbons, electrical & electronic equipment and metals.
