A ZERBAIJAN-GERMANY ECONOMIC RELATIONS : CURRENT SITUATION AND PERSPECTIVES

AAZERBAIJAN-GERMANY ECONOMIC ZERBAIJAN-GERMANY ECONOMIC RELATIONSRELATIONS: CURRENT SITUATION : CURRENT SITUATION

AND PERSPECTIVESAND PERSPECTIVES

Lecturer Elshan BAGIRZADEHLecturer Elshan BAGIRZADEH

Azerbaijan State Economic UniversityAzerbaijan State Economic UniversityTurkish Turkish World Management FacultyWorld Management FacultyInternational RelationsInternational Relations Department Department

Siegen-Germany, Siegen-Germany, 6 Mart 20106 Mart 2010

CaspianCaspian

SeaSea

KKazakhistanazakhistan

BakBakuu

Black SeaBlack Sea

TTurkeyurkey

IranIran

RRussiaussia

GGeorgiaeorgia

ArmeniaArmenia

IraqIraq

TTurkmanistanurkmanistan

UzbekistanUzbekistan

GermanyGermany

Mediterranean SeaMediterranean Sea

UkraineUkraine

AzerbaijanAzerbaijan

AZERBAIJANAZERBAIJAN Official nameOfficial name – Republic of Azerbaijan – Republic of Azerbaijan Official languageOfficial language – Azeri (Turkish of Azerbaijan) – Azeri (Turkish of Azerbaijan) GovernmentGovernment – President Republic – President Republic CapitalCapital – Baku – Baku Declaring of IndependentDeclaring of Independent – 18 October 1991 – 18 October 1991 AreaArea – 86,600 km2 – 86,600 km2 PopulationPopulation – 9,000,000 – 9,000,000 Ethnic groupsEthnic groups – 90.6% Azeri, 2.2% Dagestani, 1.8% Russian, – 90.6% Azeri, 2.2% Dagestani, 1.8% Russian,

1.5% Armenian, 3.9% other1.5% Armenian, 3.9% other Labour forceLabour force – 5,78 million – 5,78 million Labour force by occupationLabour force by occupation – services (48,6%), industry – services (48,6%), industry

(12,1%), agriculture and forestry (39,3%) (2005) (12,1%), agriculture and forestry (39,3%) (2005) UnemploymentUnemployment – 6% – 6% Population below poverty linePopulation below poverty line – 11.0% – 11.0% CurrencyCurrency – Manat – Manat GDP per capitaGDP per capita – $5,346 – $5,346 GDP by sectorGDP by sector – agriculture (6.7%), industry ( 65.0%), services – agriculture (6.7%), industry ( 65.0%), services

( 28.3%) ( 28.3%) GDP GrowthGDP Growth –9.3% –9.3% InflationInflation – 1.5% – 1.5% Gini indexGini index – 36.5 – 36.5 HDIHDI – 0.787 (medium) – 0.787 (medium) Main industriesMain industries –petroleum and natural gas, petroleum –petroleum and natural gas, petroleum

products, oilfield equipment; steel, iron ore, cement; products, oilfield equipment; steel, iron ore, cement; chemicals;petrochemicals; textiles; machinery; cotton; chemicals;petrochemicals; textiles; machinery; cotton; foodstuffs foodstuffs

Total investmentTotal investment – 21.3% of GDP – 21.3% of GDP ExportsExports – $14.2 billion – $14.2 billion Exports goodsExports goods – oil and gas 90%, machinery, cotton, foodstuffs – oil and gas 90%, machinery, cotton, foodstuffs Main export partnersMain export partners – Italy 40.2%, US 12.6%, Israel 7.6%, – Italy 40.2%, US 12.6%, Israel 7.6%,

India 5.1%, France 4.9% India 5.1%, France 4.9% ImportsImports – $ 6.12 billion – $ 6.12 billion Import goodsImport goods – machinery and equipment, oil products, – machinery and equipment, oil products,

foodstuffs, metals, chemicalsfoodstuffs, metals, chemicals Main import partnersMain import partners –Russia 18.8%, Turkey 11.2%, Germany –Russia 18.8%, Turkey 11.2%, Germany

8.3%, Ukraine 7.9%, China 6.7%, UK 5.4% 8.3%, Ukraine 7.9%, China 6.7%, UK 5.4% Public debtPublic debt – 4.6 % of GDP – 4.6 % of GDP Public revenuesPublic revenues – $ 12.9 billion – $ 12.9 billion Public expensesPublic expenses – $ 13.2 billion – $ 13.2 billion External public debt External public debt – $3.4 billion– $3.4 billion Reserves of foreign exchange and goldReserves of foreign exchange and gold – $20.4 billion – $20.4 billion

GERMANYGERMANY Official nameOfficial name – Federal Republic of Germany – Federal Republic of Germany Official languageOfficial language - German - German GovernmentGovernment – Federal Parliamentary Republic – Federal Parliamentary Republic CapitalCapital – Berlin – Berlin Declaring of IndependentDeclaring of Independent -23 May 1949 -23 May 1949 AreaArea – 357,021 km2 – 357,021 km2 PopulationPopulation – 81,757,600 – 81,757,600 Ethnic groupsEthnic groups – 91.5% German, 2.4% Turkish, 6.1% other – 91.5% German, 2.4% Turkish, 6.1% other Labour forceLabour force – 43.6 million – 43.6 million Labour force by occupationLabour force by occupation – services (67.5%) industry (29.7%), – services (67.5%) industry (29.7%),

agriculture (2.4%)agriculture (2.4%) UnemploymentUnemployment – 7.7% – 7.7% Population below poverty linePopulation below poverty line – 11% – 11% CurrencyCurrency – Euro – Euro GDP per capitaGDP per capita – $ 44,729 – $ 44,729 GDP by sectorGDP by sector – agriculture (0.9%), industry (30.1%), services(69%) – agriculture (0.9%), industry (30.1%), services(69%) GDP GrowthGDP Growth – 0.0% (2009) – 0.0% (2009) InflationInflation – 0.0 % (2009) – 0.0 % (2009) Gini indexGini index – 27 (low) – 27 (low) HDI HDI – 0.947 (very high)– 0.947 (very high) Main industriesMain industries – iron, steel, coal, cement, chemicals, machinery, – iron, steel, coal, cement, chemicals, machinery,

vehicles, machine tools, electronics, food and beverages, vehicles, machine tools, electronics, food and beverages, shipbuilding, textilesshipbuilding, textiles

Total investmentTotal investment – 19.2 % of GDP – 19.2 % of GDP ExportsExports - $ 1.498 trillion - $ 1.498 trillion Export goodsExport goods – machinery, vehicles, chemicals, metals and – machinery, vehicles, chemicals, metals and

manufactures, foodstuffs, textilesmanufactures, foodstuffs, textiles Main export partnersMain export partners – France 9.7%, US 7.1%, UK 6.7%, – France 9.7%, US 7.1%, UK 6.7%,

Netherlands 6.6%, Italy 6.4%, Austria 5.4%, Belgium 5.2%, Spain Netherlands 6.6%, Italy 6.4%, Austria 5.4%, Belgium 5.2%, Spain 4.4%, Poland 4%4.4%, Poland 4%

ImportsImports – $1.232 trillion – $1.232 trillion Import goodsImport goods – machinery, vehicles, chemicals, foodstuffs, textiles, – machinery, vehicles, chemicals, foodstuffs, textiles,

metals metals Main import partnersMain import partners – Netherlands 12.5%, France 8.3%, Belgium – Netherlands 12.5%, France 8.3%, Belgium

7.5, China 6.2%, Italy 5.7%, UK 5.4%, Austria 4.3%, Russia 4.2%, 7.5, China 6.2%, Italy 5.7%, UK 5.4%, Austria 4.3%, Russia 4.2%, US 4.2%US 4.2%

Public debtPublic debt – 64.4% of GDP – 64.4% of GDP Public revenuesPublic revenues - $1.591 trillion - $1.591 trillion Public expensesPublic expenses - $1.591 trillion - $1.591 trillion External public debt External public debt – $5.2 trillion– $5.2 trillion Reserves of foreign exchange and goldReserves of foreign exchange and gold – $138 billion – $138 billion

FORMATION OF RELATIONSFORMATION OF RELATIONS In 12 JanuaryIn 12 January 19921992 the Independence of Azerbaijan was recognized by the Independence of Azerbaijan was recognized by

Germany.Germany. In 20 February 1992In 20 February 1992, it was formed the first relations between two countries , it was formed the first relations between two countries

diplomatically. diplomatically. In 2 September 1992In 2 September 1992, the embassy of Azerbaijan was opened in Germany., the embassy of Azerbaijan was opened in Germany. In 22 September 1992In 22 September 1992, the embassy of Germany was opened in Azerbaijan., the embassy of Germany was opened in Azerbaijan. In 1-4 July 1996In 1-4 July 1996 Haydar Aliyev, former President of Azerbaijan visited to Haydar Aliyev, former President of Azerbaijan visited to

Germany.Germany. In 24-26 August 2004, 14-16 February 2007, 21-22 November 2009 and 4-6 In 24-26 August 2004, 14-16 February 2007, 21-22 November 2009 and 4-6

February 2010February 2010, Ilham Aliyev, President of Azerbaijan visited to Germany. , Ilham Aliyev, President of Azerbaijan visited to Germany. From 1997’From 1997’thth year year,, the intergovernment the intergovernmental al negotiations for development negotiations for development

organize betorganize between Ministry of Economic Development of Azerbaijan and ween Ministry of Economic Development of Azerbaijan and Ministry of Federal Economic Cooperation and Development of Germany Ministry of Federal Economic Cooperation and Development of Germany every yearevery year..

From 2004’th yearFrom 2004’th year, it has been organized ten Azerbaijan-Germany Business , it has been organized ten Azerbaijan-Germany Business Forums.Forums.

There are There are friendship groupsfriendship groups in both parliament of countries. in both parliament of countries. In this day, Germany is one of the In this day, Germany is one of the important political and economical important political and economical

partnershippartnership of Azerbaijan in Europe. of Azerbaijan in Europe. The relations between two countries have The relations between two countries have positive trendspositive trends from 1992 year. from 1992 year.

ADOPTED DOCUMETS ON ECONOMIC RELATIONS (1995-2009)ADOPTED DOCUMETS ON ECONOMIC RELATIONS (1995-2009)DOCUMENTSDOCUMENTS NUMBERNUMBER PROJECTSPROJECTS

The intergovernmental agreement on air transport between The intergovernmental agreement on air transport between Azerbaijan and Germany, 27 July 1995Azerbaijan and Germany, 27 July 1995

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The intergovernmental agreement on encouragement and protection The intergovernmental agreement on encouragement and protection of investments, 22 December 1995of investments, 22 December 1995

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The intergovernmental agreement on formation of found of researches The intergovernmental agreement on formation of found of researches and specialists, 2 July 1996and specialists, 2 July 1996

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The intergovernmental agreement on removing of doubled taxation The intergovernmental agreement on removing of doubled taxation related to incomes and wealth, 25 August 2004related to incomes and wealth, 25 August 2004

-- --

The intergovernmental agreement on technical cooperationThe intergovernmental agreement on technical cooperation(GTZ)(GTZ)

22-Improvement of private sectorImprovement of private sector-Agrarian policyAgrarian policy- Reforms of system of Law court and jurisprudenceReforms of system of Law court and jurisprudence-Health, agriculture, education, system of bank, improvement of Health, agriculture, education, system of bank, improvement of body of current law body of current law

The agreement on intergovernmental financial cooperationThe agreement on intergovernmental financial cooperation 1414

-Project of aid for refugesProject of aid for refuges-Project of aid for Baku AirportProject of aid for Baku Airport-Project of buying of share of Germany Investment and Project of buying of share of Germany Investment and Development Organization (DEG) in Microfinance Bank (1.5 million Development Organization (DEG) in Microfinance Bank (1.5 million Euro)Euro)-Project of Construction of AzDRES-Imishly electric line Project of Construction of AzDRES-Imishly electric line -Project of Formation of Credits Guarantee Fund Project of Formation of Credits Guarantee Fund - Project of Opened Communal InfrastructureProject of Opened Communal Infrastructure-Project of Improvement of Small and Medium Entrepreneurship and Project of Improvement of Small and Medium Entrepreneurship and Reparation of Systems of Electricity Reparation of Systems of Electricity -Project of Struggle with TuberculosisProject of Struggle with Tuberculosis-Project of Formation Samur-Yalama National Park Project of Formation Samur-Yalama National Park

The agreement on credit and finance from Germany Reconstruction The agreement on credit and finance from Germany Reconstruction and Credit Bankand Credit Bank

33 Total credit: 244,58 million EuroTotal credit: 244,58 million Euro-Reparation of infrastructure of electric, water and otherReparation of infrastructure of electric, water and other-Improvement of system of finance and bankImprovement of system of finance and bank

AID TO AZERBAIJANAID TO AZERBAIJAN

Type of aidType of aid 1994-20091994-2009

Financial aid Financial aid 24,5 million Euro24,5 million Euro

Technical aidTechnical aid 44 million Euro44 million Euro

INVESTMENT RELATIONS INVESTMENT RELATIONS GERMAN INVESTMENTS TO AZERBAIJAN ECONOMYGERMAN INVESTMENTS TO AZERBAIJAN ECONOMY

20002000 20032003 20042004 20052005 20062006 20072007 20082008 20092009

Total foreign investmentTotal foreign investment(million $)(million $)

927927 33713371 4575,54575,5 4893.24893.2 5052.85052.8 6674.36674.3 6847.46847.4 1846.61846.6

GermanyGermany(million $)(million $)

1.71.7 -- 2.12.1 21.621.6 17.417.4 22.922.9 48.248.2 0.3750.375

Share of Total Share of Total (%)(%)

0.20.2 -- 0.040.04 0.40.4 0.30.3 0.30.3 0.70.7 0.020.02

Today, there are 112 German companies in Azerbaijan.Today, there are 112 German companies in Azerbaijan.

COUNTRIES AND INTERNATIONAL ORGANIZATIONS WHICH COUNTRIES AND INTERNATIONAL ORGANIZATIONS WHICH INVESTED T0 AZERBAIJAN ECONOMYINVESTED T0 AZERBAIJAN ECONOMY

20092009’th YEAR’th YEARthousand manatthousand manat

SHARE OF TOTAL SHARE OF TOTAL (%)(%)

TotalTotal 1477260,31477260,3 100,0100,0

United Kingdom United Kingdom 726626,5726626,5 49,249,2

U.S.A.U.S.A. 216769,5216769,5 14,714,7

JapanJapan 113147,1113147,1 7,77,7

Norway Norway 70526,370526,3 4,84,8

TTurkeyurkey 55929,255929,2 3,83,8

FraFrancence 40432,240432,2 2,72,7

Czech RepublicCzech Republic 34581,334581,3 2,32,3

SwitzerlandSwitzerland 31370,331370,3 2,12,1

Republic of Korea Republic of Korea 12222,012222,0 0,80,8

United Arab AmiratesUnited Arab Amirates 3654,43654,4 0,20,2

Suudi ArabiaSuudi Arabia 2549,82549,8 0,20,2

AAustriaustria 2183,32183,3 0,10,1

KazakhistanKazakhistan 1680,61680,6 0,10,1

RRussiaussia 864,2864,2 0,10,1

ItalyItaly 803,7803,7 0,10,1

GermanyGermany 300,5300,5 0,00,0

The World BankThe World Bank 93857,593857,5 6,46,4

The Asia Development Bank The Asia Development Bank 39383,639383,6 2,72,7

The Europe Reconstruction and Development BankThe Europe Reconstruction and Development Bank 21287,521287,5 1,41,4

Kuviet Economic Development FundKuviet Economic Development Fund 5620,75620,7 0,40,4

The Islamic Development BankThe Islamic Development Bank 3470,13470,1 0,20,2

FOREIGN TRADE RELATIONSFOREIGN TRADE RELATIONS

AZERBAIJAN – GERMANY FOREIGN TRADE INDICATORS (1996-2009)AZERBAIJAN – GERMANY FOREIGN TRADE INDICATORS (1996-2009)19951995 19961996 19971997 19981998 19991999 20002000 20012001 20022002 20032003 20042004 20052005 20062006 20072007 20082008 20092009

ExportExport(mil.$)(mil.$)

3,9 3,1 6,2 6,6 7,6 8,3 12,9 28,8 7,3 37,6 34,8 9,0 19,7 205,5 86,8

ImportImport(mil. $)(mil. $)

43,8 77,2 38,8 46,7 46,2 67,5 72,8 83,4 170,0 198,4 256,3 403,8 471,2 598,6 550,9

TotalTotal 47,7 80,3 45,0 53,3 53,8 75,8 85,7 112,2 170,3 236,0 291,1 412,8 490,9 804,1 637,7

Source: The Statistical Committee of Azerbaijan Republic

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

Foreign Trade between Azerbaijan and Germany (Million $)

Import 198.5 256.3 403.7 471.0 598.65 550.98

Export 37.6 34.8 9.0 19.7 205.49 86.75

Total 236.1 291.1 412.7 490.7 804.14 637.73

2004 2005 2006 2007 2008 2009

THE FIRST TEN PARTNERS OF AZERBAIJAN IN THE FIRST TEN PARTNERS OF AZERBAIJAN IN FOREIGN TRADE AND GERMANYFOREIGN TRADE AND GERMANY

EXPORT (2009)EXPORT (2009) IMPORT (2009)IMPORT (2009)

Million $Million $ Share of %Share of % Million $Million $ Share of %Share of %

İtalİtalyy 3 788,44 25,77 RusRussiasia 1 070,93 17,50

U.S.A.U.S.A. 1 746,81 11,88 TTurkeyurkey 905,98 14,80

FranFrancece 1 326,11 9,02 GermanyGermany 550,97 9,00

İsraİsraelel 1 236,20 8,41 UkraUkraineine 511,65 8,36

RusRussiasia 744,95 5,07 ChinaChina 484,82 7,92

TaTaiwaniwan 680,39 4,63 UKUK 274,77 4,49

CCanadaanada 660,65 4,49 U.S.A.U.S.A. 264,22 4,32

IndonesiaIndonesia 587,48 4,00 JapanJapan 146,21 2,39

MalaMalaysiaysia 395,01 2,69 ItalyItaly 142,12 2,32

GGeorgiaeorgia 387,56 2,64 BelarusBelarus 136,66 2,23

OtherOther 3 144,90 21,40 OtherOther 1 631,40 26,67

TotalTotal 14 698,50 100,00 TotalTotal 6 119,73 100,00

Source: The Statistical Committee of Azerbaijan Republic

THE FIRST TEN FOREIGN TRADE PARTNERS OF THE FIRST TEN FOREIGN TRADE PARTNERS OF AZERBAIJAN IN EUROPE UNION AND GERMANYAZERBAIJAN IN EUROPE UNION AND GERMANY

20092009 (m(million $illion $) ) Countries Countries ExportExport Share of %Share of % ImportImport Share of %Share of % TotalTotal Share of %Share of %

İtalİtalyy 3 788,443 788,44 25,7725,77 127,73127,73 2,092,09 3 916,173 916,17 18,8118,81

FranFrancece 1 326,111 326,11 9,029,02 142,12142,12 2,322,32 1 468,231 468,23 7,057,05

GermanyGermany 86,7586,75 0,590,59 550,98550,98 9,009,00 637,73637,73 3,063,06

United KingdomUnited Kingdom 196,88196,88 1,341,34 274,77274,77 4,494,49 471,65471,65 2,272,27

Spain Spain 316,60316,60 2,152,15 14,8614,86 0,240,24 331,46331,46 1,591,59

GreeceGreece 179,75179,75 1,221,22 5,685,68 0,090,09 185,43185,43 0,890,89

BBulgariaulgaria 128,47128,47 0,870,87 8,638,63 0,140,14 137,10137,10 0,660,66

SwedenSweden 4,084,08 0,030,03 118,00118,00 1,931,93 122,08122,08 0,590,59

NiderlandNiderland 66,1066,10 0,450,45 54,5354,53 0,890,89 120,63120,63 0,580,58

MaltaMalta 83,4783,47 0,570,57 0,200,20 0,000,00 83,6783,67 0,400,40

Source: The Statistical Committee of Azerbaijan Republic

MAIN GOODS AND SERVICES IN FOREIGN MAIN GOODS AND SERVICES IN FOREIGN TRADE BETWEEN AZERBAIJAN AND GERMANYTRADE BETWEEN AZERBAIJAN AND GERMANY

STRUCTURE OF IMPORT FROM GERMANY STRUCTURE OF IMPORT FROM GERMANY (2008)(2008)

Type of goodsType of goods Thousand $Thousand $ Share of %Share of %

Automobiles and their partsAutomobiles and their parts 162 580,0162 580,0 27,227,2

Equipment and mechanical devices and their partsEquipment and mechanical devices and their parts 157 291,0157 291,0 26,326,3

TobaccoTobacco 97 834,097 834,0 16,316,3

Optician, photographicOptician, photographic,, measure, supervision, medical tools and measure, supervision, medical tools and apparatusesapparatuses 49 406,049 406,0 8,38,3

Electric machines and equipments, apparatusElectric machines and equipments, apparatus and and their parts their parts 37 770,937 770,9 6,36,3

Ferrous metals and its products Ferrous metals and its products 30 025,230 025,2 5,05,0

OtherOther 63 663,163 663,1 10,610,6

TotalTotal:: 598 570,2598 570,2 100,0100,0

STRUCTURE OF IMPORT FROM AZERBAIJAN STRUCTURE OF IMPORT FROM AZERBAIJAN (2008)(2008)

Type of goodsType of goods Thousand $Thousand $ Share of %Share of %

Raw oilRaw oil 197 142,7197 142,7 95,995,9

Hazelnut, caviar and otherHazelnut, caviar and other 8 342,98 342,9 4,14,1

TotalTotal:: 205 485,6205 485,6 100,0100,0

Source: The Statistical Committee of Azerbaijan Republic

THE DEVELOPMENT STAGES THE DEVELOPMENT STAGES OF AZERBAIJAN ECONOMYOF AZERBAIJAN ECONOMY

Crisis periodCrisis period ( 1991 -1995 ( 1991 -1995 ))

StabilityStability andand reform reform periodperiod ( 199 ( 19955 - -1998 1998 ))

Progress periodProgress period ( 1998 -2004 ( 1998 -2004 ))

Raising periodRaising period ( 2004 - ? ( 2004 - ? ))

MAIN STATE PROGRAMMES (2004 - ?)MAIN STATE PROGRAMMES (2004 - ?)

Struggle against povertyStruggle against poverty

Rural developmentRural development

Public investmentsPublic investments

Improvement and supporting of private sectorImprovement and supporting of private sector

Struggle against corruption and shadow economyStruggle against corruption and shadow economy

Improve of ecological situationImprove of ecological situation

Improve of sources of alternative energyImprove of sources of alternative energy

MAIN ECONOMIC INDICATORS OF AZERBAIJAN MAIN ECONOMIC INDICATORS OF AZERBAIJAN ECONOMIC DEVELOPMENT PROCESSECONOMIC DEVELOPMENT PROCESS

Azerbaijan economy has increased Azerbaijan economy has increased 8.4 times8.4 times from from 1995 to 2009.1995 to 2009.

State BudgetState Budget has increased 10 times from 2003 to has increased 10 times from 2003 to 2009.2009.

Poverty levelPoverty level has gone down has gone down from from 49% to 11% 49% to 11% from 2003 tfrom 2003 too 2009.2009.

Average monthly salaryAverage monthly salary has increased 3.5 times has increased 3.5 times from 2003 to from 2003 to 20092009..

Middle monthly pensionsMiddle monthly pensions have increased 3.8 times have increased 3.8 times from 2003 to from 2003 to 20092009. .

Azerbaijan has been Azerbaijan has been the leader countrythe leader country according according to indicator of economical growth to indicator of economical growth in the World in in the World in 2006-20082006-2008 years. years.

PERSPECTIVE OF AZERBAIJAN ECONOMYPERSPECTIVE OF AZERBAIJAN ECONOMY ““Doing business-2009”Doing business-2009”: Azerbaijan is the reformist country of the : Azerbaijan is the reformist country of the

world in area of improve of the business environment.world in area of improve of the business environment. ““Doing business-2010”Doing business-2010”: The measures implemented in area of : The measures implemented in area of

improve of the business environment in Azerbaijan are valued improve of the business environment in Azerbaijan are valued positively.positively.

World Economic ForumWorld Economic Forum: Azerbaijan Economy is the first : Azerbaijan Economy is the first according to ‘Global Competitiveness Index -2009-2010’ in according to ‘Global Competitiveness Index -2009-2010’ in among CIS countries. among CIS countries.

IMFIMF: Azerbaijan has economy that durable to crisis and the least : Azerbaijan has economy that durable to crisis and the least undergoesed to influence of the foreign factors.undergoesed to influence of the foreign factors.

IMFIMF: It will be real economic growth of 12.3 % in Azerbaijan in : It will be real economic growth of 12.3 % in Azerbaijan in 2010.2010.

The EconomistThe Economist: It will be real economic growth of 9.5 % in : It will be real economic growth of 9.5 % in Azerbaijan in 2010. And this indicator will be the 3’rd in the World.Azerbaijan in 2010. And this indicator will be the 3’rd in the World.

The BankerThe Banker: Azerbaijan is 4’th in the World according to indicator : Azerbaijan is 4’th in the World according to indicator of ‘Economic Perspectives’.of ‘Economic Perspectives’.

The Economist Intelligence UnitThe Economist Intelligence Unit: It will be per capita GDP of : It will be per capita GDP of 11.4 thousand U.S. dollar according to PPP in Azerbaijan in 11.4 thousand U.S. dollar according to PPP in Azerbaijan in 2010.2010.

PERSPECTIVE OPPORTUNITIES OF GERMANY-PERSPECTIVE OPPORTUNITIES OF GERMANY-AZERBAIJAN ECONOMIC COOPERATION AZERBAIJAN ECONOMIC COOPERATION

Formation of the Formation of the intergovernmental commissionintergovernmental commission on trade and economical on trade and economical cooperation,cooperation,

Cooperation between German and Azerbaijan Cooperation between German and Azerbaijan banksbanks in areas of finance and in areas of finance and credit,credit,

Cooperation between Azerbaijan banks and KWF and other German banks Cooperation between Azerbaijan banks and KWF and other German banks in the area of in the area of financing of the small and medium enterprisefinancing of the small and medium enterprise,,

Creation of the Creation of the joint venturesjoint ventures in areas of equipments of machine building, in areas of equipments of machine building, steel mill, telecommunication, electrical engineering, textile and steel mill, telecommunication, electrical engineering, textile and pharmaceutics,pharmaceutics,

Cooperation in areas of bring up, processing and packing up of the Cooperation in areas of bring up, processing and packing up of the agriculture productsagriculture products,,

Creation of the Creation of the joint ventures joint ventures in area of organizing of production of in area of organizing of production of equipments of electrical engineering,equipments of electrical engineering,

Participation of German companies and application of German Participation of German companies and application of German experience in developing of experience in developing of service sector service sector of Azerbaijan,of Azerbaijan,

Cooperation with German companies on Cooperation with German companies on formation of paid roadsformation of paid roads in in Azerbaijan.Azerbaijan.

Cooperation in area of adapting of Azerbaijan products to Cooperation in area of adapting of Azerbaijan products to European European standardsstandards. .

AAzerbaijan State Economic Universityzerbaijan State Economic Universityİstiglaliyyat İstiglaliyyat No. No. 6, Bak6, Bakuu

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APPENDIX 1:APPENDIX 1:

PROJECTS OF NEW BUILDINGS PROJECTS OF NEW BUILDINGS AND SHOPPING CENTRES TO AND SHOPPING CENTRES TO

CONSTRUCT IN BAKU CITYCONSTRUCT IN BAKU CITY

APPENDIX 2:APPENDIX 2:

PHOTOS FROM AZERBAIJAN PHOTOS FROM AZERBAIJAN