GDP, current US$ billion
GDP per capita, current US$
Life Expectancy at Birth, years (2015)
Azerbaijan is in the process of redefining its government structure following a Constitutional amendment in September 2016 making it a fully presidential republic and instituting new vice president positions. These changes come at a time when Azerbaijan’s economy is facing critical challenges due to the fall in oil prices, high inflation, and the crisis in the financial sector.
The Government is trying to address these challenges by accelerating reforms to improve the environment for private sector development. In December 2016, it launched a Strategic Roadmap for the development of the national economy and 11 key sectors. These strategy documents set medium- and long-term goals for reforms and sustained development. Fiscal consolidation will likely remain a policy priority through the medium term, however, which may delay implementation of some of the investment programs.
Azerbaijan is trying to benefit from regional connectivity initiatives to boost transit and trade. In particular, the country is one of the sponsors of the East–West and North–South transport corridors. Construction of the Baku–Tbilisi–Kars railway line, which will connect the Caspian region with Turkey, is expected to be completed in July 2017. The Trans-Anatolian Natural Gas Pipeline (TANAP) and Trans-Adriatic Pipeline (TAP) will deliver natural gas from Azerbaijan’s Shah Deniz gas field to Turkey and Europe.
The Government has embarked on reforms that will accelerate banking sector resolution and improve the business environment—critical ingredients for restoring public and investor confidence.
Last Updated: Apr 20, 2017