Problems of the Azerbaijani Economy Diversification in Modern Conditions

The article deals with the problems of diversification of the Azerbaijani economy in current conditions. Azerbaijan has formed a model of economic development considering the effective use of oil resources, which became the engine of the country's economy after the restoration of its independence connected with the former USSR collapse. The essence of the model of economic development of Azerbaijan and its essential features are revealed. Emphasis is placed on minimising the country's economy's dependence on the oil factor through intensive development and improving the efficiency of non-oil sectors of the economy. Priority directions of development of non-oil industries are considered, and their potential is analysed. The dynamics of GDP in the oil and non-oil sectors of the Azerbaijani economy is given. The share of the oil and non-oil sectors in the GDP of the country's economy is estimated. The industry structure by type of economic activity and some indicators of the non-oil sector of Azerbaijan are presented. The structure of the output of the non-oil sector of the country is given. The dynamics of attracting foreign investment in specific sectors of the Azerbaijani economy is reflected. The need to accelerate the development of specific non-oil sectors of the economy, characterised by high potential and competitiveness, is noted. Especially recommended is the expansion of activities in the field of heavy engineering, chemical and petrochemical, and the metallurgical industry of the non-oil sector of the industry. The importance of strengthening modernisation and developing targeted programs for equipping non-oil sectors of the country's economy with high technologies ensures its effectiveness is substantiated. Several recommendations and proposals on the problems of diversification of the Azerbaijani economy soon are given.