AZERBAIJAN

Covid-19 reveals structural vulnerabilities

D4

HIGH RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

The country risk assessments are your North Star metrics to make the right decision for your business and understand the risks in international trade. We have always the best solution for your needs

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GDP USD 48bn (World ranking 89, World Bank 2019)
Population 10mn (World ranking 90, World Bank 2019)
Form of state Presidential republic
Head of state Ilham Aliyev (President)
Next elections 2025, presidential and legislative
  • Ample natural resources in the hydrocarbon sector
  • Substantial foreign currency assets in the State Oil Fund of Azerbaijan (SOFAZ)
  • High regional political instability
  • Relatively poor regional relations, in particular the conflict with Armenia over the Nagorno Karabakh enclave
  • Authoritarian political regime
  • Government effectiveness and slow progress of structural reforms
  • Significant level of perceived corruption and weak protection of property rights
  • Huge dependence on oil and gas sector, creating substantial external vulnerability
  • Exchange rate risk
  • Weak banking system, with very high level of non-performing loans

Trade structure by destination/origin

(% of total)

Exports Rank Imports
Italy 17%
1
19% Russia
Turkey 12%
2
14% Turkey
China, Taiwan Province of 9%
3
8% China
Israel 7%
4
6% United Kingdom
Germany 7%
5
6% United States

Trade structure by product

(% of total)

Exports Rank Imports
Petroleum, petroleum products and related materials 86%
1
12% Other industrial machinery and parts
Vegetables and fruits 2%
2
9% Iron and steel
Sugar, sugar preparations and honey 2%
3
8% Road vehicles
Plastics in primary forms 1%
4
8% Specialised machinery
Gas, natural and manufactured 1%
5
5% Electrical machinery, apparatus and appliances, n.e.s.
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