Oil Still Supports Growth But Azerbaijan Diversifies

摘要

The world is in flux, but the oil-rich growth story of Azerbaijan remains intact thanks to the government's policy success in pushing diversification. Oil remains the life-blood of the country and provided a cushion to soften the blow of the global crunch in 2008. Azerbaijan has been the only country in the region not to suffer from devaluation of its currency - and the silver lining was that the crisis has refocused the state on breaking its dependence on oil exports. However, the economy has been affected in some ways, along with almost all countries. The economy contracted mildly by 0.1 percent in 2011, partly due to maintenance work on its major oil wells at the Azeri-Chirag-Guneshli (ACG) oilfield, but Azerbaijan has now passed its nadir and put the worst behind it since last year. Full-year growth for 2012 clocked in at 2.2 percent, but the non-oil segments of the economy have taken over from oil as the main economic driver. Oil production fell by 5.3 percent in 2012, but the services sector grew by an estimated 8.1 percent.