Azerbaijan

Azerbaijan in CAREC

  • Azerbaijan joined CAREC in 2003
  • Since 2003, around $4.47 billion has been invested in transport and energy
  • 13 ongoing CAREC projects
  • 8 completed CAREC projects

ADB allocates $1.5 billion to support energy, transport, and urban sectors

The Asian Development Bank (ADB)'s updated business plan for Azerbaijan will allocate around $1.5 billion in loans and technical assistance grants to help the country diversify its economy and promote sustainable, non-oil growth. Read more

 

View CAREC projects in Azerbaijan

 


CAREC in Azerbaijan

Azerbaijan joined the CAREC Program in 2002, when it embraced a common vision of newly independent neighbors cooperating to build prosperity in the wake of the Soviet Union’s collapse. Through CAREC, Azerbaijan has been working to promote growth and connectivity, and to make the region into a center of trade and commerce as global markets increasingly integrate.

The country’s north–south and east–west highways have great potential as major corridors for transit traffic between Asia and Europe. The rehabilitation of many of Azerbaijan’s roads could boost non-oil trade and increase traffic between the Caspian Sea and Black Sea.

Azerbaijan has focused on improving its international and domestic road networks with a view to stimulating economic growth, increasing the competiveness of its products, and accelerating regional development. CAREC supports these efforts.

Key Projects

East-West Highway Improvement Project

Azerbaijan's most important corridor for international trade is the 500-kilometer East-West Highway, which runs between the Caspian Sea and Black Sea. Read more

As of 2015, around $4.47 billion has been invested in transport- and energy-related projects Azerbaijan through CAREC. These projects have helped improve transport, trade, and energy infrastructure and policies, and have spread the benefits of better connectivity.

Key investments have been made in an international transport corridor linking East Asia to Europe. This corridor is part of a vast network that stretches from the People’s Republic of China (PRC) to Azerbaijan and points farther west, and from the cold Kazakhstan interior to the ports of Pakistan.

Along with its advances in road and railway construction, Azerbaijan has led the way in promoting efficient border controls—by simplifying customs procedures to significantly reduce transit times. Through its support of and participation in the CAREC Program, Azerbaijan is helping unlock the region’s vast resources and human potential.

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Economic Outlook

Highlights from the Asian Development Outlook 2016:

Plunging oil prices in 2015 cut export earnings, and sharp currency depreciation reduced household consumption and public investment, slowing growth to 1.1%. Continued weakness in oil prices is projected to cause GDP to contract by 1.0% in 2016 before recovering to 1.0% growth in 2017 as oil prices revive. Only by financing the expansion of diverse sectors can Azerbaijan move away from heavy dependence on hydrocarbons. Read full report

More economic and social indicators for Azerbaijan from the World Bank's World Development Indicators online.

Human Development

The United Nations Development Programme prepares reports on human development in Azerbaijan.