Azerbaijan profile

Demography and Health

Azerbaijan’s population stands at about 10.2 million in 2024 (rank 94), with a positive net migration of 10,864 people in the same year, suggesting that the country attracts more people than it loses to other destinations. The demographic profile features a modest birth rate of 11.1 per 1,000 people (2023) and a crude death rate of 5.9 per 1,000 (2023), contributing to a natural increase in population alongside migration. Life expectancy at birth is 74.4 years (2023), reflecting mid-level health outcomes by global standards. Under-5 mortality is 18.6 per 1,000 live births (2023), indicating room for improvement in child health outcomes. Hunger remains relatively low, with 2.5% of the population undernourished (2022). In terms of health spending, current health expenditure accounts for 3.98% of GDP (2022), and domestic general government health expenditure per capita, PPP, is about 212 international dollars (2022), signaling comparatively limited public health funding per person. Azerbaijan demonstrates strong digital connectivity with 89% of the population using the Internet (2023). Research and development investment is 0.182% of GDP (2023), accompanied by 119 resident patent applications (2021), signaling a small but growing science and innovation footprint alongside modest institutional capacity for translating R&D into outputs. Overall, health indicators point to progress but also to challenges in financing and outcomes, especially in child health and broad-based public health investment.

Economy, Trade and Investment

Azerbaijan’s nominal GDP per capita is about 7,284 US dollars in 2024 (rank 99), while GDP per capita at purchasing power parity is 25,089 international dollars (2024, rank 79), illustrating a notably higher purchasing power than the nominal figure might imply and signaling a diversified consumption base when adjusted for cost of living. The economy exhibits a relatively open trade stance: exports of goods and services amount to 45.9% of GDP (2024, rank 46) and imports to 36.8% of GDP (2024, rank 81), pointing to substantial external engagement and import-reliant inputs for domestic production. The current account balance is in surplus at 6.29% of GDP (2024, rank 14), which aligns with significant export earnings—consistent with substantial energy-related exports that underpin the external position. Foreign direct investment net inflows stand at 0.311% of GDP (2024, rank 89), indicating moderate external financing and investor interest albeit not at frontier levels. The economy benefits from a notable share of high-technology exports measured at 37,073,081 current US$ (2024, rank 21), signaling capacity for more technologically advanced production alongside traditional sectors. Inflation is moderate at 2.21% (2024, rank 106), supporting price stability for households and firms. Unemployment is 5.65% of the labor force (2022, rank 50), reflecting a functioning labor market with some slack, and population size remains sizable at about 10.2 million (2024). Innovation indicators show patent activity (119 resident filings in 2021, rank 59) and R&D expenditure at 0.182% of GDP (2023, rank 19), suggesting a transition toward greater knowledge-based activity, though investment intensity remains modest. Taken together, Azerbaijan’s macro profile depicts a cash-flow-rich economy with strong external receipts and diversification potential, but with constraints in investment scale, public financing, and research intensity that could temper longer-term growth without policy深化.

Governance and Institutions

Azerbaijan faces a governance environment characterized by mixed performance on institutional quality indicators. Political stability and absence of violence/terrorism score is negative (-0.731 in 2023, rank 161), signaling exposure to security and disorder risks that can affect policy continuity and business confidence. Regulatory quality is modest (-0.109, 2023, rank 97), while the rule of law is below average (-0.567, 2023, rank 140), and control of corruption is particularly weak (-1.2, 2023, rank 172). Government effectiveness registers at -0.0326 (2023, rank 94). Collectively these indicators point to deficiencies in legal and regulatory frameworks, and governance weaknesses that can constrain investment, contract enforcement, and public service delivery. The country also devotes resources to security, evidenced by military expenditure of about 3.56 billion current US$ in 2023 (rank 49), highlighting a substantial priority for defense relative to other public needs. While governance challenges exist, these indicators do not preclude policy action and reform; instead, they underscore areas where capacity-building, anti-corruption measures, rule-of-law enhancements, and regulatory improvements could bolster domestic confidence and attract higher-quality investment, particularly in a context of large external surpluses and an openness to external capital and technology transfer.

Infrastructure and Technology

Azerbaijan shows strong digital connectivity, with 89% of the population online in 2023, indicating robust information and communications infrastructure that supports commerce, education, and e-governance. The country also demonstrates notable high-technology export activity (37 million current US$ in 2024, rank 21), signaling a capacity to generate technologically skilled products relative to peers. Research and development intensity sits at 0.182% of GDP (2023, rank 19), modest yet higher than many regional comparators, and resident patent activity (119 filings in 2021, rank 59) provides a signal of ongoing inventive effort. The combination of strong internet penetration and measurable R&D activity offers a foundation for innovation-led growth, though the absolute scale of R&D spending remains limited, and the reliance on technology outputs is still developing. Foreign direct investment net inflows are 0.311% of GDP (2024, rank 89), suggesting a cautious but present investor interest in the country’s infrastructure, manufacturing, and technology sectors. Energy-intensive industries and the infrastructure that supports them underpin much of the system’s capacity, while the modest R&D footprint indicates room for strategic investments to accelerate modernized, knowledge-based sectors.

Environment and Sustainability

Azerbaijan faces environmental challenges and resource stress that are evident in several indicators. Level of water stress, defined as freshwater withdrawal as a share of available resources, is 57.3% (2021, rank 32), signaling significant freshwater competition and the need for efficient water management and conservation measures. Total greenhouse gas emissions per capita, excluding LULUCF, are 6.16 t CO2e (2023, rank 63), pointing to relatively high emissions per person, consistent with energy-intensive economic activity. Renewable energy consumption is 1.3% of total final energy consumption (2021, rank 163), indicating substantial dependence on non-renewable sources and a clear opportunity to expand renewables. Vulnerability to climate stresses, water scarcity, and emissions intensification underscore the priority for environmental policy and investment in sustainable practices. The prevalence of undernourishment is low at 2.5% (2022, rank 91), suggesting that food security is not a predominant constraint; however, long-term sustainability will require balancing energy exports with cleaner growth, water resource management, and investments in low-emission technologies to improve resilience and environmental performance.