Oil rich Caspian Sea nation is home to a population of just under 8 million. The nation’s livelihood is very dependent on its oil sales. Caspian Sea oil reserves are similar in size to that of the North Sea reserves for United Kingdom, Norway, etc. Oil output is forecasted to hit 1 million bpd up from 477,000 bpd in 2005 due to the new $4 billion USD oil pipeline from Baku, Azerbaijan to Ceyhan, Turkey. By 2010, oil revenues will result in a doubling of national GDP.
Economic Statistics
Total GDP as measured by purchasing power parity stands at $37 billion USD (2005) with corresponding GDP/Capita at $4,700 USD. GDP market at $10.67 billion USD. GDP growth rates are forecasted at 26.2 percent for 2006, 22.9 percent for 2007. Inflation for year 2006 is estimated at 8.6 percent, year 2007 at 11.8 percent. Historical inflation quotes include year 2004 at 10.4 percent, 1997 at 3.7 percent. The current account is in deficit in 2005 at 5 percent of GDP, huge improvement from 2005 where it reached 30 percent. Public debt is at only 14 percent of GDP. Foreign exchange reserves at $1.2 billion USD (2005) and forecasted to hit $2 billion USD in year 2006.
CURRENCY: ISO Symbol ‘AZN’, Azerbaijani manat, new manat. At time of review on April 13, 2006, the new manat had an exchange value of 0.9108 AZN to the US-dollar (USD) and/or 1.101 AZN to the Euroland euro. On January 1, 2006, the new manat (AZN) replaced the old manat (AZM) at 5000 AZM to 1 AZN. De facto exchange rate peg to the US-dollar, oil is priced in US-dollars which consists of a large component of Azerbaijan’s foreign exchange earnings. The exchange rate peg was temporarily removed in February 2005 and re-introduced in September 2005 in order to combat inflation. Back in 1994, the exchange rate was set by an auction of domestic commercial banks. Of note, during year 2005 the old manat appreciated to the USD due to the increase in domestic oil revenues for Azerbaijan.
CURRENCY HISTORY: the old manat came into circulation in 1992 replacing the then Russian ruble at a valuation of 10 rubles to 1 old manat. Historical valuations for the include: year 1994 at 1570 old manat (AZM) to the US-dollar (USD), 1995 at 4413, year 1996 at 4301, 1997 at 3985, year 1998 at 3869, 1999 at 4373, 2001 at 4656, 2002 at 4860, 2003 at 4910, 2004 at 4913 and year 2005 at 4727.
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