Economy of Azerbaijan facts for kids
The Economy of Azerbaijan is how people in Azerbaijan make money and what goods and services the country produces. It's built on three main things: industry, agriculture (farming), and services like tourism.
Azerbaijan has a lot of oil and natural gas. These are super important for the country's economy and help it grow a lot. Many people work in services, and about a third work in farming. Because of the oil and gas, many foreign companies have invested money in Azerbaijan. This has made Azerbaijan's economy one of the fastest-growing in the world!
After becoming independent in 1991 (when the Soviet Union ended), Azerbaijan started changing its economy. Before, the government controlled everything. Now, it's becoming a market economy, where businesses are mostly private. The government has sold many state-owned farms and companies to private owners.
Azerbaijan is still making economic changes. Old ways of doing business are slowly being replaced. After independence, Azerbaijan joined big international groups like the International Monetary Fund and the World Bank.
Azerbaijan's money is called the Azerbaijani manat (AZN). It's divided into 100 qəpik. The manat became the national money in 1992, replacing the old Soviet ruble. The Central Bank of Azerbaijan was also created in 1992. This bank is in charge of printing the manat and looking after all the other banks in the country.
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Industry in Azerbaijan
Azerbaijan has many natural resources that provide energy. The most important ones are oil and natural gas. The country also uses hydroelectricity (power from water) and wind power.
Other natural resources found in Azerbaijan include minerals like gold, silver, iron, and copper. These are dug out of the ground through mining.
Oil and natural gas are the biggest parts of Azerbaijan's economy. They are the main things the country exports to other countries, which helps the economy grow. These resources are also used to make many other products. Refineries turn oil and gas into things like gasoline, fertilizers, kerosene, and plastics.
The oil and natural gas are sent through long pipelines. These pipelines carry them from the Caspian Sea to ports on the Black Sea (in Russia and Georgia) and to a port on the Mediterranean Sea (in Turkey).
Hydroelectric power plants provide about 20% of Azerbaijan's electricity. Wind power is also slowly becoming more common. Other important industries in Azerbaijan include making cement, fertiliser, steel, chemicals, automobiles, and machinery.
Farming in Azerbaijan
Agriculture is a smaller part of Azerbaijan's economy. It makes up only about 6% of the country's total production (called GDP). However, it provides jobs for many people, about 38% of all workers.
About 21% of Azerbaijan's land is good for growing crops. Another 2% is used for crops that last many seasons, like fruit trees. A large part of the cultivated land, about 16%, uses irrigation (watering systems) to help crops grow.
The main crops grown for sale include grapes, cotton, tobacco, citrus fruits, rice, tea, and vegetables. Raising Livestock (farm animals) and making dairy products, wine, and other drinks are also important farm activities.
Farms in Azerbaijan are set up in different ways. Some are large state or cooperative farms that employ many farmers. Others are small private farms, owned and run by one farmer and their family.
In the past, Azerbaijan was famous for producing and exporting caviar (fish eggs). Today, the fishing industry mostly focuses on the decreasing numbers of sturgeon and beluga fish in the Caspian Sea.
Tourism in Azerbaijan
Tourism is a big and important part of Azerbaijan's economy. In the 1980s, Azerbaijan was a very popular place for tourists. But after the Soviet Union ended and during the Nagorno-Karabakh War in the 1990s, tourism was badly affected. People stopped visiting, and Azerbaijan's image as a tourist spot suffered.
It wasn't until the 2000s that the tourism industry started to get better. Since then, more and more tourists have been visiting Azerbaijan and staying overnight.
In recent years, Azerbaijan has also become popular for different types of tourism. These include religious tourism, spa tourism (for relaxation and health treatments), and health care tourism. During winter, ski resorts like the Shahdag Winter Complex are very popular with visitors from other countries.
Related pages
Images for kids
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This picture shows what Azerbaijan exported in 2009.
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This chart shows what Azerbaijan exported in 2006.
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This graph shows how the average income per person (GDP per capita) in Azerbaijan has changed since 1973.
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The Marauder (Mine Protected Vehicle) is made in Azerbaijan.
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These are petroglyphs (ancient rock carvings) in Gobustan. They are about 10,000 years old and show a lively culture from long ago. Gobustan is a UNESCO World Heritage Site.
See also
In Spanish: Economía de Azerbaiyán para niños
