Article

Based on rich reserves of oil and natural gas, Azerbaijan was one of the first petroleum-producing regions of the world. In addition the country has a well-developed agricultural base (with cotton as the main cash crop), a large industrial sector, and an extensive transportation network. The economic downturn during the past 5 years affected all these sectors, with the highest declines occurring in industry. The industrial sector in Azerbaijan has been characterised by a strong dichotomy between energy and non-energy related activities, largely associated with a distorted price structure which has favoured energy products. Agriculture remains a key sector in the economy, generating about 30"/o of GDP for 1995 was about USD 1,8 billion.