Investments in Azerbaijan's economy (january-june 2014)

According to the Azerbaijani State Statistics Committee, around 7.625.9 billion manat was invested from all financial sources in the development of the economic and social areas of Azerbaijan in January-June 2014, which is by 3.4 percent more than in the same period of 2013. It indicates sustainable investment activity in the country.

In particular, around 1.504.7 billion manat were invested in the Azerbaijani economy in June 2014, which is by 6 percent less than investments in fixed assets in June 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-June 2014 are as follows:

• funds of enterprises and organizations - 4.240.2 billion manat (a 30.6 percent increase compared to January-June 2013;
• budgetary funds - 2.717.7 billion manat (a 18.3 percent decrease);
• off-budgetary funds - 135 million manat (a 47.4 percent decrease);
• bank loans - 273.9 million manat (a 21.1 percent decrease);
• funds of population - 220 million manat (a 23.9 percent increase)

Apparently, an increase in investments in the country's economy in January-June 2014 is related to the increased investment activity of the funds of the enterprises, organizations and the population.

According to the State Statistics Committee, investments in construction work increased by 10.7 percent. Investments worth 5.179.3 billion manat were made in construction of production facilities and 2.446.6 million manat - in non-production facilities.

According to the State Statistics Committee, private enterprises and organizations invested 50.8 percent of all investments in the capital stock, and public enterprises and organizations - 49.2 percent.

About 61.2 percent of funds invested in capital stock, or 4.663.9 billion manat, were directed at the development of the non-oil sector. Investments in the oil sector comprised 2.962 billion manat (38.8 percent). Investments in non-oil sector decreased by 8.9 percent, but increased by 31.4 percent in the oil sector.

The total investments in the Azerbaijani industry totaled 3.581.2 billion manat with an increase of 6.9 percent. About 210.7 million manat were invested in the processing industry (a decrease of 56.9 percent). During the reporting period, the investments in the extractive sector hit 2.946.1 billion manat, which is 30.1 percent more than investments in January-June 2013. Totally, some 47 percent of investments fell to the industrial sector.

Around 70.7 percent of the total capital investments accounted for domestic investments. This is a positive index, primarily, because it shows the growing financial potential of the country.

Most of domestic investments (66.1 percent) fall to the state-owned enterprises and entities, and only 33.9 percent - private enterprises.

Investment indices in January-June 2014:

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

The total amount of foreign investments in Azerbaijan's economy amounted to 2.233.1 billion manat in January-June 2014 or by 20.7 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 80.3 percent (1.794.1 billion 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-June 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 31.2 percent, while investments totalled 697.5 million manat.

The biggest amount of investments of the international financial institutions was allocated by WB to the amount of 34.7 million manat in a special weight of 1.6 percent. WB projects cover different spheres of the country's economic life.