Investments in Azerbaijan's economy (January-May 2015)

According to the Azerbaijani State Statistics Committee, around 6.416 billion manat was invested from all financial sources in the development of the economic and social areas of Azerbaijan in January-May 2015 or by 3.7 percent more than in the same period of 2014.

Around 1.548 billion manat was invested in Azerbaijani economy in May 2015 or by 3.6 percent more investments in fixed capital than in May 2014.

The main sources of investments in January-May 2015 are as follows:

• funds of enterprises and organizations - 4.605 billion manat (an increase of 33.8 percent compared to January-May 2014;
• budgetary funds - 1.236 billion manat (a decrease of 44.9 percent);
• off-budgetary funds - 107.5 million manat (a decrease of 6.9 percent);
• bank loans - 248.1 million manat (an increase of 12.5 percent);
• funds of population - 163.3 million manat (an increase of 22.3 percent)

Apparently, the investments made in the country's economy in January-May 2015 increased due to an increase in investment activity of all sources except for the budgetary and off-budget funds.

According to the State Statistics Committee's report, the private businesses and organizations invested 70.9 percent of total investments in the fixed capital, but the state businesses and organizations - 29.1 percent.

The investments in construction and installation work for the period amounted to 76.9 percent of the total investments. The growth of this index was 12.0 percent per annum.

The investments worth 4.151 billion manat were made in the construction of production facilities, while 2.265 billion manat in the non-production facilities.

Some 57.01 percent (3.66 billion manat) of the investments made in fixed capital were directed to the development of the non-oil sector. Some 2.76 billion manat (42.99 percent) were invested in the country's oil sector.

Some 49.5 percent of investments accounted for the industrial spheres, 12.3 percent - construction, 13.3 percent - transport and warehousing, 4.4 percent - sports, entertainment and the arts, 2.2 percent - trade and repair of vehicles , 2.3 percent - information and communications, 1.3 percent - education, one percent - real estate transactions, one percent - health care, 4.1 percent - tourist accommodation and catering, 0.8 percent - rendering of administrative and additional services, 0.3 percent - financial and insurance activity, services in other areas, 0.1 percent - the scientific and technical work.

Around 59.1 percent of the total capital investments accounted for domestic investments.

Investment indices in January-May 2015:

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

The total amount of foreign investments in Azerbaijan's economy amounted to 2.625 billion manat in January-May 2015 or by 44.7 percent more compared to January-May 2014.

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, the credit rating of Azerbaijan increased by the world leading rating agencies, the policy of integration into the world economy contribute to the growth of foreign investments.

Around 89.3 percent (2.343 billion manat) of investments in Azerbaijan's economy made by foreign countries and international organisations fell to investors from the UK, U.S, Japan, Norway, Turkey and Iran in January-May 2015.

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 32.0 percent, while investments totalled 839.0 million manat.