Economy of Baku

Baku is the capital city of Azerbaijan. On the coast of the Caspian Sea, in the Caucasus region, it is an international junction of land and sea trade routes and the center of Azerbaijan's economic life. The city's economy encompasses a number of sectors.

Industry

Heavy industry

Baku's main branches of heavy industry include oil and gas extraction, shipbuilding, steelmaking, mechanical engineering, and chemical manufacturing. The city also manufactures equipment for local and international oil and gas extraction, including a deep foundation plant in Sahil, and engineering plant in Keshla and clay and steel plants in Binagadi.

The Baku Steel Company meets local demand for casting imported steel. It has two electric arc furnaces and three rolling lines, with an annual steel-production capacity of 1,000,000 tonnes. The company manufactures rebar, square and round billets, channels, rolled wire, angle bars, I-beams, square and round rods, and related products. Steel Structures, the open joint-stock company Baku Steel Construction, and several other plants produce products for the construction industry. Radio-electronics factories and car and shipbuilding plants also operate in the city. The Gozdak, Shuvalan, and Korgöz quarries surrounding Baku produce sawn stones. Reinforced concrete, asbestos and brick plants, and the Garadagh cement plant produce construction materials.[1]

Light industry

Clothing is an important part of Baku's light industry, in addition to shoe and leather plants. Baku-Glass produces bottles for juice and alcoholic beverages, and Baku Sewing House manufactures coats, jackets, suits and casual clothing. Caucasus Paper Industry is one of the largest producers of cleansing and hygienic paper in Azerbaijan and the South Caucasus.[2]

Mining

Oil production decreased by 6.2 percent from 2016 to 2017, and commercial gas production decreased by 2.2 percent.

Crude oil and natural gas
Product January–November 2017 January–November 2016 (%) 1 December 2017 stockpile
Crude oil (including gas condensate), thousand tons 34,889.8 93.8 216
Natural gas, million cubic meters 16,551.4 97.8 -
Other mining products
Product January–November 2017 January–November 2016 (%) 1 December 2017 stockpile
Limestone for construction, thousand tons 112.3 80.4 -
Gravel, crushed stone 31,942.6 167.6 -
Gypsum and anhydride, tons 19,739.8 130 2,585.6

Total 2017 oil production was m2,469.2 million, a 9.2-percent decrease from January to November of the previous year. Petrol production increased by 4.7 percent, petroleum coke by 6.8 percent, bitumen by 22.7 percent, and lubricating oil by 370 percent. Diesel-fuel production decreased by 20 percent, mazut fuel oil by 42.6 percent, and white petrolatum by 6.9 percent.[3]

Oil production (thousand tons)
Product January–November 2017 January–November 2016 (%) 1 December 2017 stockpile
Petrol for cars 1,097.6 104.7 55.2
Petrol for petrochemical use 169 96.5 1.1
White petroleum 539 93.1 13.4
Diesel fuel 1,718.4 80 53.1
Mazut 262.5 57.4 7
Lubricating oil 33.6 370 8.2
Bitumen 208.8 122.7 2.9
Petroleum coke 197.5 106.8 1.3

Manufacturing

From January to November 2017, goods with a value of m4,843.7 million were manufactured.

Period Change from previous year (%) Change from previous year (%)
2016 2017
January 99.2 102.0
January–February 103.5 92.5
January–March 103.8 84.1
January–April 106.2 89.6
January–May 106.4 89.6
January–June 112.7 89.3
January–July 103.9 89.3
January–August 98.9 89.2
January–September 99.9 87.9
January–October 100.1 89.4
January–November 100.0 89.9
January-December 99.1 102.0

Agriculture

Baku's agricultural sector has been developed in the city's suburbs. Due to its semi-desert, dry-steppe climate, olives, pistachios, almonds and saffron are also grown.[4]

Total area (ha) 2010 2013 2014 2015 2016 2017
Potatoes 20 20 10 10 18 19
Vegetables 459 606 456 509 688 1196
Plants and flowers 13 10 10 11 11 11
Fruits and berries 1,277 1,466 1,483 1,526 2,899 2,927
Grapes 1,498 1,435 1,441 1,441 1,300 1,303
Production (tons)
Potatoes 50 136 36 50 134 128
Vegetables 13,868 23,861 7,561 8,693 12,812 53,343
Plants and flowers 105 80 174 322 103 102
Fruits and berries 3,972 6,999 7,125 6,022 4,688 5,313
Grapes 14,800 9,600 8,918 9,433 7,963 8,009
Production (centners per ha)
Potatoes 25 68 34 50 76 67
Vegetables 158 294 154 135 91 50
Plants and flowers 84 80 174 293 93 93
Fruits and berries 31.1 47.8 48.6 41.1 18.4 19.2
Grapes 23.1 47.8 39.9 47.8 41.2 40.8
Total livestock
Cattle (including water buffalo) 5,343 5,963 6,203 6,022 8,289 8,341
Sheep and goats 2,755 2,710 3,155 2,826 3,880 4,360
Pigs 15,938 16,480 16,466 13,540 18,872 18,359
Birds 578 438 447 422 125 152
Animal products (tons) 393,465 334,126 298,699 557,474 504,016 875,447
Meat 1,180 1,994 1,996 2,302 2,434 2,406
Milk 3,799 5,082 3,910 4,058 4,245 4,669
Eggs 10,252 7,301 5,597 9,678 7,458 7,391
Wool 36 36 31 31 27 31

Construction

The new Baku Higher Oil School campus, the new Narimanov District Court administrative building, a bridge in Pirallahı raion, the Pirallahi Solar Power Plant, the Balakhani Industrial Park, the Baku–Tbilisi–Kars railway, the Pirshagi-Novkhani road and the Binagadi-Novkhani-Corat highway were completed between January and November 2017. Almost three-quarters of the funds allocated to capital assets were spent on construction.[5]

Construction costs, January–November 2017
Total (thousand m) January–November 2016 (%)
Baku 5,130,130 104
Raions
Binəqədi 227,090.3 97.9
Xətai 858,471.7 103.9
Xəzər 100,992.8 3.9 d.
Qaradağ 492,102.9 120.5
Nərimanov 476,879.7 112.3
Nəsimi 1,047,540.8 123.5
Nizami 168,072.8 43,2
Sabunçu 114,550.7 163.7
Səbail 1,073,628 85.7
Suraxanı 47,033.7 88
Yasamal 523,766.7 131.1

Metallurgy

Baku is considered one of the country's largest metallurgy centers due to the availability of scrap metal, local energy resources (oil and natural gas) and a large, well-trained labor force. The city produces non-ferrous and ferrous metals.[6]

Transportation

Baku's transportation system consists of the Baku Metro, buses, and taxis. According to data from January to November 2017, freight transport by road increased by 1.6 percent over 2016 to 5,3021.2 thousand tons. Passenger transportation increased by 0.1 percent, to 623,024.1 thousand passengers. The number of metro passengers increased by 5.3 percent over 2016, to 207.6 million.[7]

Consumption

From January to November 2017, the cost of consumer products and services in Baku increased 2.2 percent over the same period of 2016 to m21,964.1 million. Non-governmental goods and services made up 95.6 percent of the total; retail goods and services in this sector increased by 1.7 percent over the previous year, to m21,001.3 million.

Consumer spending
Markets January–November 2017 (million m) 2016 (%)
Total 21,964.1 102.2
On state property 962.8 115.1
On non-state property 21,001.3 101.7
Private enterprise 15,663.5 99.4

Pipelines

The Baku-Novorossiysk, Baku-Supsa (Georgia) and Baku-Tbilisi-Ceyhan (Turkey since 2006) pipelines originate in Baku and transport Azerbaijani oil to the global market.[8]

See also

References
  1. "Ağır sənaye".
  2. "Yüngül sənaye".
  3. "Azərbaycanın regionları: Bakı şəhəri". Official website of the State Statistical Committee of the Republic of Azerbaijan.
  4. "BAKI şəhəri. Kənd təsərrüfati".
  5. "Information about construction of Baku on Official page of Baku City Statistical Office".
  6. "Company Profile".
  7. Bakı Şəhər Statistika İdarəsi (In Azerbaijani). "Information about transportation of Baku on the official page of Baku City Statistical Office". www.baku.azstat.org. Retrieved 2018-02-28.
  8. "Baku-Novorossiysk Oil Pipeline".
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