Azerbaijan

Azerbaijan is an upper-middle-income economy whose wealth flows overwhelmingly from oil and natural gas in the Caspian Sea, which it exports to Europe and beyond via major pipelines.

Energy revenues have funded rapid development of the capital, Baku, but left the economy undiversified and exposed to price swings. Victory over Armenia in the 2020 and 2023 Nagorno-Karabakh conflicts has bolstered the government.

Key Sectors

The economy is dominated by oil and natural gas, which account for most exports and government revenue, with agriculture and a nascent tourism sector far behind.