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Country Profile: Azerbaijan

Azerbaijan, located at the crossroads of Eastern Europe and Western Asia, is bordered by the Caspian Sea to the east and separated from Europe by the Caucasus Mountains. With a population exceeding 10.6 million, it is predominantly ethnically Azerbaijani, and its governance has been characterized by a strong presidential republic system, currently led by President Ilham Aliyev. The economy is largely dependent on oil and gas revenues, which have driven infrastructure development, yet challenges like corruption and limited diversification persist. The nation has seen conflict with Armenia over the Nagorno-Karabakh region, impacting its social fabric and geopolitical landscape.

Geography

Azerbaijan features a diverse landscape, ranging from its flat Kur-Araz Lowland to the Great Caucasus Mountains. The country is landlocked except for its coastline along the Caspian Sea, which is critical for its maritime trade. The climate is predominantly dry and semi-arid, with agriculture making substantial use of the land.

  • Total Area: 86,600 sq km
  • Land Boundaries: 2,468 km with neighbors Armenia, Georgia, Iran, Russia, and Turkey.
  • Major Water Bodies: 3,971 sq km of freshwater.
  • Mean Elevation: 384 m; highest point is 4,466 m at Bazarduzu Dagi.
  • Natural Resources: Includes petroleum, natural gas, and iron ore.

People and Society

The population of Azerbaijan is predominantly Azerbaijani, with significant ethnic minorities including Lezghins and Russians. The society is largely urbanized, with Baku being the capital and the most densely populated area. A significant majority of the population adheres to Islam, primarily of the Shia denomination.

  • Population (2024 estimate): 10,650,239
  • Urbanization Rate: 57.6% of the population lives in urban areas.
  • Life Expectancy: 75.9 years.
  • Literacy Rate: 99.8%.
  • Median Age: 34.3 years.

Economy

Azerbaijan's economy is classified as upper-middle income and is heavily reliant on oil and gas exports. While the fiscal health has been supported by energy revenues, the country faces challenges in diversifying its economy. Economic growth has remained modest due to fluctuations in the global oil market.

  • GDP (2024 estimate): $74.316 billion
  • Real GDP per Capita: $22,100
  • Unemployment Rate: 5.6%.
  • Growth Rate (2024 estimate): 4.1%.
  • Contribution of Agriculture: 5.7% of GDP.

Government

Azerbaijan is governed as a presidential republic, with a legal system based on civil law. The political scene has been dominated by the Aliyev family since 1993, leading to criticisms of authoritarian governance. The electoral system allows for universal suffrage at age 18, but accusations of electoral manipulation persist.

  • Capital: Baku
  • Current President: Ilham Aliyev since 2003.
  • Legislative Body: National Assembly with 125 seats.
  • Independence: Declared on 30 August 1991.
  • Last Election Date: 7 February 2024.

Military and Security

Azerbaijan maintains a substantial military force, with significant expenditures focused on enhancing its capabilities. The military confronts security challenges from its historic conflict with Armenia and geopolitical tensions in the region.

  • Military Expenditures (2024 estimate): 5.1% of GDP.
  • Active Personnel: Approximately 100,000.
  • Mandatory Service Age: 18-25 years for men.
  • Focus Areas: Territorial defense and internal security.
  • Military Modernization: Continuous upgrades with international partnerships.

Energy

Azerbaijan is rich in energy resources, mainly oil and natural gas, which play a crucial role in its economy. The energy sector is critical for both domestic use and export revenue.

  • Total Petroleum Production (2023 estimate): 618,000 bbl/day.
  • Natural Gas Production (2023 estimate): 35.775 billion cubic meters.
  • Electricity Access: 100% of the population.
  • Installed Capacity: 8.383 million kW (2023).

Environment

Azerbaijan faces significant environmental challenges, particularly air and water pollution stemming from industrial activity. The country is a party to several international environmental agreements aimed at mitigating these issues.

  • Major Environmental Issues: Severe air, soil, and water pollution.
  • Agricultural Land Use: 57.8% of total land.
  • Carbon Dioxide Emissions (2023 estimate): 38.892 million metric tonnes.
  • Recycling Rate of Municipal Solid Waste: 14.4%.

Transportation

Azerbaijan has a well-developed transportation network that includes railways, highways, and a growing aviation sector, facilitating trade and connectivity.

  • Total Railways: 2,944.3 km.
  • Airports: 32 as of 2025.
  • Mobile Cellular Subscriptions: 11 million (2023).
  • Broadband Subscriptions: 2.15 million (2023).

Communications

Azerbaijan boasts a growing communications sector, characterized by high mobile and internet penetration, though the media landscape faces restrictions.

  • Internet Users: 89% of the population (2023).
  • Fixed-line Telephones: 1.635 million subscriptions.
  • TV Ownership: Almost universal, with state media dominance.

Key Metrics

MetricValueNote
Population10,650,2392024 estimate
Area86,600 sq kmTotal area
GDP$74.316 billion2024 estimate
Energy Consumption per Capita66.467 million Btu2023 estimate
Birth Rate11.2 births/1,0002024 estimate
Unemployment Rate5.6%2024 estimate
Life Expectancy75.9 years2024 estimate
Literacy Rate99.8%2023 estimate
Inflation Rate2.2%2024 estimate
Military Expenditures5.1% of GDP2024 estimate