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Baku Energy Forum - President: Azerbaijan managed to reduce share of oil and gas in GDP

President: Azerbaijan managed to reduce share of oil and gas in GDP

18.12.2021

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"With respect to the structure of our economy, I think we managed already significantly to reduce the volume of oil and gas in our GDP which many years ago was absolute majority and now is less than half. So, the structure of Azerbaijan’s economy became more balanced," Azerbaijani President Ilham Aliyev said in an interview with Italy's Il Sole 24 Ore newspaper on Dec. 15, Report informs via Azertag.

"But with respect to our exports, of course, more than 90 percent of our export is oil, natural gas, oil products and electric energy. For the country it is an advantage. Because we managed to enter the market where exporting now oil, natural gas, electric energy, petrochemicals and oil products which brings a lot of cash to our economy. And the more gas we export, and the growing number of gas is obvious, the less is ratio in our export of non-oil products. For gas and oil we don’t need to have to look for markets. Oil is on the world market, gas already has markets. But for our other products, like agricultural products, we are limited to regional markets. And it is very difficult to enter the European market, because in the European market the countries is competing between themselves. So, our main exports are Turkey, Russia and some other countries. I would say that this year was a very remarkable from that point of view. Our export of non-energy projects grew 45 percent and our non-energy related industry grew 20 percent. So, this is really a remarkable result. Still, in the volume of export the ratio of non-oil segment is low, but I think it will grow. Especially, taking into account the new opportunities on the liberated territories and this huge potential of agriculture, tourism, renewable energy and industry. So, we plan reduce dependence on oil and gas in the future. But at the same time, we should understand that oil and gas will play important role for our economy for many decades ahead," the head of state said.