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Investments in Azerbaijan's Economy (january-june 2015)

Analysis Materials 13 August 2015 15:57 (UTC +04:00)

According to the Azerbaijani State Statistics Committee, around 7.926 billion manat was invested from all financial sources in the development of the economic and social areas of Azerbaijan in January-June 2015 or by 0.3 percent more than in the same period of 2014.

Around 1.509 billion manat was invested in Azerbaijani economy in June 2015 or by 3.6 percent more investments in fixed capital than in June 2014.

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

  • funds of enterprises and organizations - 5.659 billion manat (an increase of 32.4 percent compared to January-June 2014;
  • budgetary funds - 1.488 billion manat (a decrease of 45.9 percent);
  • off-budgetary funds - 126.1 million manat (a decrease of 8.2 percent);
  • bank loans - 368 million manat (an increase of 51 percent);
  • funds of population - 225.3 million manat (an increase of 13.3 percent)

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

According to the State Statistics Committee's report, the private businesses and organizations invested 70.7 percent of total investments in the fixed capital, but the state businesses and organizations - 29.3 percent.

The investments in construction and installation work for the period amounted to 73.6 percent of the total investments. The growth of this index was 11.5 percent per annum.

The investments worth 5.096 billion manat were made in the construction of production facilities, while 2.829 billion manat in the non-production facilities.

Some 55.2 percent (4.50 billion manat) of the funds invested in the fixed capital were directed to the development of non-oil sector. Some 3.43 billion manat (44.8 percent) were invested in the oil sector of the country or by 12.2 percent more than in the same period of last year.

The total investments in the Azerbaijani industrial sector amounted to 3.99 billion manat or by 15.3 percent more compared to January-June 2014.

The investments in extractive industry totaled 3.5 billion manat or by 18.6 percent more than in January-June 2014.

Some 50.4 percent of investments accounted for the industrial sector, 12.5 percent - construction, 12.3 percent - transport and warehousing, 3.8 percent - sports, entertainment and the arts, 2.1 percent - trade and repair of vehicles , 2.0 percent - information and communication, 1.4 percent - education, 0.8 percent - real estate transactions, 0.9 percent - health care, 4.7 percent - tourist accommodation and catering, 0.8 percent - rendering of administrative and additional services, 0.2 percent - financial and insurance activity, services in other areas.

Around 59.4 percent of the total capital investments accounted for domestic investments.

Investment indices in January-June 2015:

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

Amount in mln manat

Specific weight in percent

Investments in total

7925,6

100,0

Foreign investments

3217,8

40,6

Domestic investments

4707,8

59,4

The total amount of foreign investments in Azerbaijan's economy amounted to 3.218 billion manat in January-June 2015 or by 44.1 percent more compared to January-June 2014.

The biggest amount of foreign investments has accounted for March (653.4 million manat, and their minimum amount - February (387.7 million manat) since the beginning of the year.

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 88.5 percent (2.849 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-June 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 percent, while investments totalled 839 million manat.

Countries

Jan.-June 2015, thousand manat

Specific weight, %

Total international investments

3217791,8

100,0

Including:

Great Britain

1030207,7

32,0

Turkey

456570,5

14,2

Norway

387148,8

12,0

Russia

221921,6

6,9

Iran

221921,6

6,9

US

179680,8

5,6

Sweden

188085,0

5,8

Japan

163227,1

5,1

the Czech Republic

83503,6

2,6

Malaysia

65325,0

2,0

France

36773,1

1,2

India

25117,9

0,8

UAE

16150,0

0,5

Germany

4010,2

0,1

Netherlands

173,1

0,0

Italy

48,6

0,0

Other countries and international financial organizations

137927,2

4,3

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