Azerbaijan and ADB
In the Spotlight
In 2015, Central Asian countries made strides improving the environment for cross-border e-commerce in the region.
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.
Despite low prices, oil production in the first half of the year rose by 1.3%, reversing a 3.9% contraction in January–June 2014, but is expected to level off for the rest of the year to allow annual maintenance, while fiscal policy is expected to remain somewhat expansionary in 2015 to support the economy.
As a connecting link between Europe and East Asia, Central Asia is set to reap the benefits of burgeoning trade between the two economic giants.
Located in the South Caucasus, Azerbaijan is an oil-rich country whose gross national income per capita has increased approximately tenfold since 2001. Consequently, in 2013, ADB upgraded Azerbaijan to a Category C developing member country. Economic growth has been spurred by the exploration and development of oil and gas reserves, high levels of public expenditure, and substantial reforms to support a market-based economy. Despite robust growth, the economy of Azerbaijan remains largely dependent upon the extraction and production of fossil fuels.
Under the country partnership strategy, 2014-2018, ADB continues to work with Azerbaijan to help achieve development targets and ensure inclusive growth.
Projects in the Azerbaijan
- Shah Deniz Stage II Gas Field Expansion Project
- Preparing MFF Power Distribution Enhancement Investment Program
- Improve Financial Service Outreach for Agriculture - Finca Azerbaijan
- AZE: Improving Financial Service Outreach for Agriculture - AccessBank Azerbaijan
- Third Road Network Development Investment Program