A/HRC/43/44/Add.1
while its economy is one of the fastest-growing in the world. In 2013, gross domestic
product (GDP) peaked at $73.56 billion, a ten-fold increase from 2003. Its economic
growth has been mainly based on hydrocarbon wealth with stable oil and gas production,
which generates nearly 60 per cent of GDP.
9.
For many years, this wealth helped sustain vigorous economic growth and
prosperity. However, recently there has been a persistent slowdown owing to the decline in
global oil prices since 2014 and a devaluation of the currency by 33.86 per cent against
major foreign currencies, 2 which has seriously affected the purchasing power of the
population, including for foodstuffs, and revealed the need to diversify the economy and
invest in non-oil sectors.
10.
The Government has started to focus its efforts on promoting entrepreneurship and
sustainable non-oil economic expansion alongside export-oriented growth, in particular the
development of the country’s agricultural potential and an increase in productivity to
guarantee economic stability. 3 Following the economic recession, Azerbaijan saw a
1.4 percentage growth in 2018, driven mainly by the non-oil sector.4 However, prioritizing
the advancement of the agriculture sector and boosting the country’s human and natural
resources potential is still at an introductory stage and requires major efforts to ensure that
continued growth benefits everyone in the long-term without exhausting natural resources.
11.
In the Azerbaijani economy, oil and gas represent over 95 per cent of exports.
Besides oil products, Azerbaijan produces cement, machinery, cotton and foodstuffs.
Agriculture accounted for 5.63 per cent of GDP in 2017 and employed 37.48 per cent of the
population in 2018. Industry accounted for 49.58 per cent of GDP in 2017 and employed
13.85 per cent of the population in 2018. Services accounted for 37.48 per cent of GDP in
2017 and employed 48.67 per cent of the population in 2018.5
12.
With a population of 10 million,6 the poverty rate is reported to have dropped from
49.6 per cent in 2000 to 4.9 per cent in 2016 7 and according to official statistics the
unemployment rate has remained steady at 5 per cent,8 with identical expectations for 2019
and 2020. These are remarkable successes in a short period of time. However, labour
markets in Azerbaijan are characterized by significant structural challenges, such as supply
and demand mismatches, high levels of vulnerable and informal work and regional labour
market disparities.9
13.
The emergence of a free market economy has assisted with the impressive growth
the country has experienced. However, in recent years and despite positive achievements,
that growth has not been inclusive and has not benefited the whole population.
14.
Globally, inequality is one of the stumbling blocks to eliminating poverty, hunger
and malnutrition. The population also faces increasing inequality: the Gini coefficient, a
measure of income inequality, has increased from 3.47 in 2000 to 17.07 in 2018. 10 That
increase is mainly attributed to the widening divide between rural and urban areas and the
economic wealth and employment mainly concentrated in Baku. Inequality and
2
3
4
5
6
7
8
9
10
4
Center for Economic and Social Development, “Devaluation of Azerbaijani national currency; causes
and consequences” (2015).
Center for Economic and Social Development, “Azerbaijani economy 2018: results and perspectives”
(February 2019).
United Nations Office in Azerbaijan, “Partnership framework 2016–2020. Progress report 2018”
(2019), p. 10.
World Bank data, 2018, available from www.worldbank.org/en/country/azerbaijan/overview#3.
See Azerbaijan Statistical Information Service, available from www.azstat.org/portal/.
World Bank, Azerbaijan country profile, available at
https://databank.worldbank.org/views/reports/reportwidget.aspx?Report_Name=CountryProfile&Id=b
450fd57&tbar=y&dd=y&inf=n&zm=n&country=AZE.
Government of Azerbaijan, “Voluntary national review on the first steps in the implementation of the
2030 Agenda for Sustainable Development” (2017), p. 6.
United Nations Office in Azerbaijan, “Partnership framework 2016–2020. Progress report 2018”,
p. 10.
See United Nations Development Programme, human development indicators (2018).
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