onsiderable 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. One obstacle to economic
progress is the need for stepped up foreign investment in the
non-energy sector. A second obstacle is the continuing conflict with
Armenia over the Nagorno-Karabakh region. 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
pipelines in the region, and Azerbaijan's ability to manage its oil
wealth.

GDP:
purchasing power parity - $26.65 billion (2003 est.)

GDP - real growth rate:
11.2% (2003 est.)

GDP - per capita:
purchasing power parity - $3,400 (2003 est.)

GDP - composition by sector:
agriculture: 14.1%
industry: 45.7%
services: 40.2% (2002 est.)

Investment (gross fixed):
50.4% of GDP (2003)

Population below poverty line:
49% (2002 est.)

Household income or consumption by percentage share:
lowest 10%: 2.8%
highest 10%: 27.8% (1995)

Distribution of family income - Gini index:
36 (1995)

Inflation rate (consumer prices):
2.1% (2003 est.)

Labor force:
4.99 million (2003)

Labor force - by occupation:
agriculture and forestry 41%, industry 7%, services 52% (2001)

Unemployment rate:
1.1% (official rate is 1.2%) (2003 est.)

Budget:
revenues: $2.063 billion
expenditures: $2.202 billion, including capital expenditures of NA
(2003)

Public debt:
16.3% of GDP (2003 est.)

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:
6.1% (2003 est.)

Electricity - production:
18.23 billion kWh (2001)

Electricity - consumption:
16.65 billion kWh (2001)

Electricity - exports:
700 million kWh (2001)

Electricity - imports:
400 million kWh (2001)

Oil - production:
307,200 bbl/day (2001 est.)

Oil - consumption:
140,000 bbl/day (2001 est.)

Oil - exports:
NA (2001)

Oil - imports:
NA (2001)

Oil - proved reserves:
589 million bbl (1 January 2002)

Natural gas - product