ic ties and structures are slowly being replaced. A major
short-term obstacle to economic progress, including stepped up
foreign investment, 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
up with Turkey, Iran, the UAE, and the nations of Europe. A serious
long-term challenge is the maintenance of the competitiveness of
non-oil exports in world markets.

GDP: purchasing power parity--$12.9 billion (1998 est.)

GDP--real growth rate: 10% (1998 est.)

GDP--per capita: purchasing power parity?$1,640 (1998 est.)

GDP--composition by sector:
agriculture: 22%
industry: 18%
services: 60% (1997 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): -7.6% (1998 est.)

Labor force: 2.9 million (1997)

Labor force--by occupation: agriculture and forestry 32%, industry
and construction 15%, services 53% (1997)

Unemployment rate: 20% (1996 est.)

Budget:
revenues: $565 million
expenditures: $682 million, including capital expenditures of $NA
(1996 est.)

Industries: petroleum and natural gas, petroleum products,
oilfield equipment; steel, iron ore, cement; chemicals and
petrochemicals; textiles

Industrial production growth rate: NA%

Electricity--production: 16.035 billion kWh (1996)

Electricity--production by source:
fossil fuel: 90.55%
hydro: 9.45%
nuclear: 0%
other: 0% (1996)

Electricity--consumption: 16.8 billion kWh (1997)

Electricity--exports: 600 million kWh (1996)

Electricity--imports: 745 million kWh (1996)

Agriculture--products: cotton, grain, rice, grapes, fruit,
vegetables, tea, tobacco; cattle, pigs, sheep, goats

Exports: $781 million (f.o.b., 1997 est.)

Exports--commodities: oil and gas, chemicals, oilfield equipment,
textiles, cotton

Exports--partners: CIS, European countries, Turkey

Imports: $794 million (c.i.f., 1997 est.)

Imports--commodities: machinery and parts, consumer durables,
foodstuffs, textiles

Imports--partners: CIS, European countries, Turkey

Debt--external: $100 million (of which $75 million to Russia)

Economic aid--recipient: ODA, $113 million (1996)

Currency: manat=100 gopiks

Exchange rates: manats per US$1--3,865.00 (November 1998),
3,985.38 (1997),