Industry leads the economic activities in Azerbaijan at about 42.6% of GDP (2024), with services near 42% and agriculture at 5.7%. What are the main economic activities in Azerbaijan? GDP reached roughly $74.3 billion in 2024 with GDP per capita near $7,284, and the economy grew 4.1%, driven by a 6.2% rise in the non-oil and gas sector.
Azerbaijan's economy in 2024 is positioned as one of the larger economies in the South Caucasus region, with a GDP of approximately $74.3 billion (World Bank, 2024). In terms of GDP per capita, Azerbaijan ranks around 85th–90th globally with approximately $7,284 (World Bank, 2024). The economy grew by 4.1% in 2024, driven primarily by a 6.2% expansion in the non-oil and gas sector.
Despite facing challenges related to hydrocarbon dependence, Azerbaijan's economy continues to show resilience, with non-oil sectors such as construction, communications, transportation, and hospitality driving recent growth.
What are the economic activities of Azerbaijan?
- Primary activities (agriculture, forestry, fishing): 5.7% of GDP (2024).
- Secondary activities (industry and construction): approximately 42.6% of GDP (2024).
- Tertiary activities (services and trade): approximately 42% of GDP (2024).
Primary Sector of Azerbaijan
Azerbaijan's primary sector, particularly its agricultural activities, thrives due to its favorable climate and rich natural resources. The country's agricultural land covers 57.84% of its total area. Main agricultural products include milk, wheat, potatoes, barley, tomatoes, watermelons, cotton, apples, onions, and maize.
Despite contributing approximately 5.7% to the GDP (2024), agriculture plays a vital role in the economy. The diverse range of crops and animal products highlights the sector's importance, providing employment and sustenance for many Azerbaijanis.
The country boasts a diverse geological landscape, leading to abundant natural resources. These include petroleum, natural gas, iron ore, nonferrous metals, and bauxite. These resources drive the economy, with petroleum and natural gas playing a significant role in the country's energy sector, while iron ore and nonferrous metals contribute to the manufacturing industry. Bauxite is a key resource for the aluminum industry, further enhancing economic growth and development.Azerbaijan's oil production ranks among the top 20 globally, with approximately 710,000 barrels per day. Its oil reserves total approximately 7 billion barrels.Azerbaijan's natural gas production of approximately 29–35 billion m³ annually ranks among the top 30 globally, fueling economic growth and energy security. The State Oil Company of the Republic of Azerbaijan (SOCAR), fully state-owned and headquartered in Baku, is the country's dominant enterprise, with estimated revenues of approximately $50.6 billion in 2024 (Fitch Ratings estimate).Secondary Sector of Azerbaijan
What is the secondary sector or what are secondary activities?In Azerbaijan, the main industrial products include petroleum and petroleum products, natural gas, oilfield equipment, steel, iron ore, cement, chemicals and petrochemicals, and textiles. These products are manufactured for domestic sale and export, contributing significantly to the country's economy. Industry and construction together accounted for approximately 42.6% of GDP in 2024, according to Azerbaijan's State Statistical Committee.Manufactures in Azerbaijan's total exports only accounted for 4.02% in 2023, indicating their relatively low significance in the country's export economy.Tertiary sector of Azerbaijan
Military Activities and Economic Sectors of Azerbaijan
In the primary sector, resources are extracted for military use, like metals for weapons. The secondary sector focuses on manufacturing military equipment, such as vehicles and weapons. The tertiary sector includes services provided by the military, like logistics and training. Research and development in the quaternary sector helps improve technology, while the quinary sector involves high-level decision-making and strategy.
Azerbaijan's military expenditure in 2023 was approximately $3.56 billion, representing 4.6% of GDP (World Bank/SIPRI, 2023). The active military force consists of approximately 126,950 personnel.
International Trade of Azerbaijan
Import Activities of Azerbaijan
Azerbaijan's import activities are significant, with total imports in 2024 reaching approximately $24.3 billion, accounting for approximately 33% of GDP (2024).Azerbaijan primarily imports gold, cars, refined petroleum, wheat, and packaged medicine. Its main import partners are Russia (approximately 19%), China (approximately 15%), Turkey, and EU countries. These imports play a crucial role in meeting the country's domestic demand and supporting its economy.Exports Activities of Azerbaijan
In Azerbaijan, exports in 2024 totaled approximately $27.1 billion, representing approximately 36% of GDP (2024). Export activities play a crucial role in driving the country's economy, with hydrocarbons accounting for the overwhelming majority of export revenues.Azerbaijan engages in significant export activities, with Italy being the primary partner (approximately 32–47%), followed by Turkey (approximately 9–19%). Key export commodities include crude petroleum, natural gas, refined petroleum, fertilizers, and aluminum. Other notable export partners include Russia, India, and Greece.Azerbaijan economy challenges in 2025
Azerbaijan continues to face economic challenges related to oil dependence and the need to diversify its economy. The country is investing in non-oil sectors such as agriculture, ICT, and tourism. GDP growth slowed to approximately 1.4% in 2025 following strong 4.1% growth in 2024, reflecting stabilization of hydrocarbon output and ongoing reform efforts.Sources
- World Bank: Azerbaijan Country Data
- IMF: 2025 Article IV Consultation – Azerbaijan
- State Statistical Committee of Azerbaijan: GDP Production 2024
- State Statistical Committee of Azerbaijan: Foreign Trade 2024
- CIA World Factbook: Azerbaijan
Last updated: June 20, 2026
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