Number of international arrivals up 12.1% y/y in 2016
The number of foreign arrivals to Azerbaijan increased 12.1% y/y in 2016 to 2.2mn. However, that number is down 10.4% from the 2013 high of 2.5mn. The biggest contribution to growth in 2016 came from visitors from Iran (+66.9% y/y), Iraq (+2,900.0% y/y), Russia (+8.6% y/y), and UAE (+2,100.0% y/y). With 744.4mn visitors, Russia tops the list of arrivals to Azerbaijan, followed by Georgia (506.0mn), Turkey (314.8mn), and Iran (249.6mn). While the number of arrivals from the wider Persian Gulf region was up significantly, their share in total arrivals is low, with visitors from Iraq and UAE accounting for 2.9% and 2.3% of total arrivals in 2016, respectively.
Commercially available oil production down, gas production up in January 2017
Crude oil production in Azerbaijan was down 4.3% y/y in January 2017 to 3.4mn tons. Oil production has been falling for the 5th month in a row. The contraction in January was driven by a 5.2% y/y decline in non-SOCAR production, while SOCAR production was down 0.3% y/y. According to SOCAR, gross gas production was down 1.9% y/y in January 2017 to 2.5bcm. However, according to AzSTAT, production of commercially available (gross minus re-injected) gas was up 6.1% y/y to 1.7bcm.
Azerbaijan ranks 68th in the 2017 Economic Freedom Index
According to the 2017 Index of Economic Freedom by the Heritage Foundation, Azerbaijan is ranked 68th (up from 91st in 2016) out of 186. Azerbaijan’s overall score has increased by 3.4 points to 63.6 compared to 2016 and the country remains in the “moderately free” category.
Azerbaijan ranks 24th in “fiscal health,” 26th in “labor freedom,” 33rd in “tax burden,” and 60th in “business freedom.” Azerbaijan ranks poorly in “monetary freedom” (131st), “judicial effectiveness” (125th), “government spending” (120th), “trade freedom” (112th), and “investment freedom” (103rd).
