A lot of events occurred in the Azerbaijani economy in 2016. In particular, Azerbaijan planned to pass to an economic model not to depend on oil in 2016.The government mainly focused on the development of the country’s export potential in 2016, namely, the expansion of non-oil goods and services and the creation of more favorable conditions in the investment sphere.Azerbaijan has recently invested billions in the development of marine, rail, automotive,communal, social infrastructure. As a result, Azerbaijan turned into a major transit country in the region.An important event of 2016 was the coordination of the details of implementing the North-South corridor project, which will become a bridge to connect the railways of Iran,Azerbaijan and Russia. Thus, the expansion of the transport routes will further increase the country's attractiveness for investors by supplying the products produced in Azerbaijan to other markets.

GENERAL ECONOMIC SITUATION IN AZERBAIJAN ..................................3

PRICES AND SITUATION IN CONSUMER MARKET IN AZERBAIJAN......7

REVIEW OF OIL AND GAS OPERATIONS IN AZERBAIJAN......................11

INVESTMENTS IN AZERBAIJAN'S ECONOMY............................................15

REVIEW OF TRANSPORT SECTOR IN AZERBAIJAN.................................19

AZERBAIJANI IT SECTOR................................................................................23

AGRICULTURE IN AZERBAIJAN....................................................................27

REVIEW OF MONETARY SECTOR IN AZERBAIJAN..................................30

FOREIGN TRADE OF AZERBAIJAN ...............................................................49

PUBLIC BUDGET OF AZERBAIJAN................................................................58

REVIEW OF CONSTRUCTION SECTOR IN AZERBAIJAN .........................59

SOCIAL SECTOR IN AZERBAIJAN .................................................................61