m, and old
economic ties and structures are slowly being replaced. A major
short-term obstacle to economic progress, including stepped up foreign
investment, is the continuing conflict with Armenia over the ethnic
Armenian-dominated region of Nagorno-Karabakh. Trade with Russia and
the other former Soviet republics is declining in importance while
trade is building up with the nations of Europe, Turkey, Iran, and the
UAE. A serious long-term challenge is the maintenance of the
competitiveness of non-oil exports in world markets.

GDP: purchasing power parity-$11.9 billion (1997 est.)

GDP-real growth rate: 5.8% (1997 est.)

GDP-per capita: purchasing power parity-$1,460 (1997 est.)

GDP-composition by sector:
agriculture: 30%
industry: 23%
services: 47% (1996 est.)

Inflation rate-consumer price index: 3.7% (1997 est.)

Labor force:
total: 2.789 million
by occupation: agriculture and forestry 32%, industry and construction
26%, other 42% (1990)

Unemployment rate: 20% (1996 est.)

Budget:
revenues: $565 million
expenditures: $682 million, including capital expenditures of $NA
(1996 est.)

Industries: petroleum and natural gas, petroleum products, oilfield
equipment; steel, iron ore, cement; chemicals and petrochemicals;
textiles

Industrial production growth rate: 0.3% (1997 est.)

Electricity-capacity: 5.239 million kW (1995)

Electricity-production: 16.051 billion kWh (1995)

Electricity-consumption per capita: 2,200 kWh (1996 est.)

Agriculture-products: cotton, grain, rice, grapes, fruit, vegetables,
tea, tobacco; cattle, pigs, sheep, goats

Exports:
total value: $789 million (f.o.b., 1996 est.)
commodities: oil and gas, chemicals, oilfield equipment, textiles,
cotton
partners: CIS, European countries, Turkey

Imports:
total value: $1.3 billion (c.i.f., 1996 est.)
commodities: machinery and parts, consumer durables, foodstuffs,
textiles
partners: CIS, European countries, Turkey

Debt-external: $100 million (of which $75 million to Russia)

Economic aid:
recipient: ODA, $14 million (1993)
note: commitments, 1992-95, $1,000 million ($185 million in
disbursements); wheat from Turkey

Currency: 1 manat = 100 gopik

Exchange rates: manats per US$1-3,936.00 (September 1997), 4,301.26
(1996), 4,413.54 (1995), 1,570.23 (1994), 99.98 (1993)

Fiscal year: calendar year

Communications

Telephones: 710,000 (1991 est.)

Telephone system: 202,000 persons waiting for telephone installati