Investments in Azerbaijan's economy (January-February 2014)

According to the Azerbaijani State Statistics Committee, around 1.824.6 billion manat was invested from all financial sources in the development of the economic and social areas of Azerbaijan in January-February 2014, which is by 7.9 percent more than in the same period of 2013. It indicates sustainable investment activity in the country.

In particular, around 1.163.7 billion manat were invested in the Azerbaijani economy in February 2014, which is by 9.5 percent more than investments in fixed assets in February 2013. Until 2015, we will observe a steady increase in investment in capital construction because of the growth of building, rehabilitation and reconstruction work in preparation for the first European Olympic Games-2015 in Azerbaijan.

The main sources of investments in January-February 2014 are as follows:

• funds of enterprises and organizations - 867.6 million manat (a 8.5 percent increase compared to January-February 2013;
• budgetary funds - 749.1 million manat (a 2.8 percent increase);
• off-budgetary funds - 23.2 million manat (a 35.9 percent decrease);
• bank loans - 93.6 million manat (a 8.1 percent increase);
• funds of population - 87.1 million manat (a 2.2 percent increase)

Apparently, an increase in investments in the country's economy in January-February 2014 is related to the increased investment activity of all financial sources, except for off-budget funds' money.

According to the State Statistics Committee, investments in construction work increased by 28.1 percent. Investments worth 1.290.2 billion manat were made in construction of production facilities and 534.4 million manat - in non-production facilities.

According to the State Statistics Committee, private enterprises and organizations invested 41.6 percent of all investments in the capital stock, and public enterprises and organizations - 58.4 percent.

About 57.5 percent of funds invested in capital stock, or 1.049.6 billion manat, were directed at the development of the non-oil sector. Investments in the oil sector comprised 775 million manat (42.5 percent). Investments in non-oil sector increased by 6.6 percent, but decreased by 9.6 percent in the oil sector.

The total investments in the industry totaled 886.7 million manat with a decrease of 0.9 percent. About 26.3 million manat were invested in the processing industry (a decrease of 47.2 percent). During the reporting period, the investments in the extractive sector hit 767.3 million manat, which is 8.6 percent more than investments in January-February 2013. Totally, some 48.6 percent of investments fell to the industrial sector

Around 66.1 percent of the total capital investments accounted for domestic investments. They increased by 9.9 percent during the year. This is a positive index, primarily, because it shows the growing financial potential of the country.

Most of domestic investments (80.8 percent) fall to the state-owned enterprises and entities, and only 19.2 percent - private enterprises.

Investment indices in January-February 2014:

(Source: State Statistics Committee and calculations by Trend")

The total amount of foreign investments in Azerbaijan's economy amounted to 618.8 million manat in January-February 2014 or by 4.9 percent more compared to the same period of 2013.

The growth of foreign investments in the country shows that Azerbaijan is a very reliable partner and a very attractive country for foreign investors. The economic reforms, economic liberalization, increasing the credit rating of Azerbaijan by the world leading rating agencies, the policy of integration into the world economy contribute to the growth of foreign investments.

Around 80.6 percent (498.8 million manat) of investments in Azerbaijan's economy made by foreign countries and international organisations fell to investors from the UK, USA, Japan, Norway, Turkey and the Czech Republic in January-February 2014.

As previously, the UK continues to maintain a leading position in the list of foreign investors in Azerbaijan. Its share in the total foreign investment was 22.7 percent, while investments totalled 140.4 million manat.

The biggest amount of investments of the international financial institutions was allocated by WB to the amount of 20.8 million manat in a special weight of 9 percent. WB projects cover different spheres of the country's economic life.