EU Business Climate Report Azerbaijan 2019

The primary aim of the survey is to provide insights into the current macroeconomic situation and business and investment climate in Azerbaijan as perceived by EU businesses. It also reveals EU companies’ expectations of short-term growth, the challenges they face and problems that remain to be tackled. The annual research highlights economic trends in the country by displaying year-on-year changes in key business indicators and factors relating to investment. The data acquired contributes significantly to this assessment of the current situation in the country, identifying the main factors impeding business operations or expansion and suggesting ways to mitigate or manage them effectively.

This year’s survey was conducted (in January-February 2019) among EU companies operating in Azerbaijan for the 4th consecutive year by the German-Azerbaijani Chamber of Commerce (AHK Azerbaijan), with financial and technical support from the Delegation of the European Union to Azerbaijan.

As in 2018, the survey consists of 20 questions on the assessment of the current economic situation in Azerbaijan, the impact of the business environment in Azerbaijan on individual companies and demographic indicators of companies. Most of the key questions have not been changed in order to obtain a comparable set of data over time. Given the significant innovations in the government's reform agenda for 2018, as well as feedback from EU companies last year, some additions have been made to the questions this year.

The companies surveyed represent 16 sectors with a wide range of activities, and the majority of responses were to Wholesale and Retail; Mining, Oil and Gas; Professional, Scientific and Technical Activities; Obtained from Financial and Insurance Activities and Transport and Warehousing. The companies participating in the survey represent 17 countries. 28% of them are German companies, 22% are Azerbaijani companies importing EU goods and services to Azerbaijan, and 15% are UK companies operating in Azerbaijan.

 

The companies participating in the survey also differ in size. Thus, 38% and 48% of companies are micro-enterprises (with a staff of up to 9 people) and small and medium-sized enterprises (with a staff of less than 250), respectively, and 14% (with a staff of more than 250 people), respectively. are large enterprises. As for the positions of the respondents, the majority of them were Directors / Chief Executive Officers (44%) and Managers (23%).

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