Non-Oil Based Growth Taking Major Share in Azerbaijan's Economy, to 70.6% in 2016

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The International Monetary Fund reports that countries in the Caucasus and Central Asian region continue to post a solid recovery from the global financial crisis, and the region's economic outlook remains favorable, projecting an average gross domestic product (GDP) growth of about 5.5%. The resilient growth reflects high oil prices that are benefiting the region's oil and gas exporters, supportive commodity process and remittance inflows for the oil and gas importers, and for both groups, moderate direct exposure to Europe.

In Azerbaijan, Ziyad Samadzade, chairman of the committee on economic policy for the country's parliament, said that the total volume of GDP in 2013 will reach $7 billion, or equivalent to eight times that of the GDP in 2003.

"The GDP growth rate in 2013 is projected to be 5.3%," Samadzade said. "This will be mainly caused by the growth of the non-oil sector. The $71 billion is $29 billion more than the figure for 2009. Around 55% of this growth will be due to the contribution from the non-oil sector."

The highest rate of decline in GDP growth in the Commonwealth of Independent States (CIS) was observed in Azerbaijan in 1990 to 2000. But from 2000 to 2008, average annual GDP growth ran up to 18.1%. This was the highest index in the CIS and one of the best in the world.

In 1999, Azerbaijan ranked 12th in terms of GDP per capita. In 2011, the country rose to sixth position, and the figure exceeded Georgia's by 2.1 times and Armenia's by 2.3 times.

Economic Development Minister Shahin Mustafayev said that in the 2014 to 2016 period, economic growth is projected at more than 5%. In 2013, the growth of non-oil GDP will be 11.7%. In 2014-16, it is projected to have an annual average of 7%. According to forecasts, in 2016, the share of non-oil GDP will reach 70.6% against the current 47.6%.

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