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Investments in Azerbaijan's economy (January-November 2016)

Analysis Materials 13 January 2017 16:30 (UTC +04:00)

According to the Azerbaijani State Statistics Committee, around 13,009.1 million manat was invested from all financial sources in the development of the economic and social areas of Azerbaijan in January-November 2016 or by 9.9 percent less than in the same period of 2015 (14,438.8 million manat).

Around 1,119.9 million manat was invested from all financial sources in the development of the economic and social areas of Azerbaijan in November 2016 or by 17.15 percent less than in the same period of 2015.

The main sources of investments in January-November 2016 are as follows:

  • funds of enterprises and organizations – 8,936.6 million manat (a 33.7 percent less compared to January-November 2015;
  • budgetary funds – 1,809.4 million manat (a 34.6 percent less);
  • off-budgetary funds – 138.5 million manat (a 46.5 percent less);
  • bank loans – 1,374.6 million manat (a 5.9 percent less);
  • funds of population – 473.9 million manat (a 1.4 percent less)

The investments made in the economy decreased in January-November 2016 in all sources of finance except the bank loans. The investments made from the state budget have decreased by 34.6 percent due to economizing the state funds since early 2016.

According to the State Statistics Committee’s report, the private businesses and organizations invested 67 percent of total investments in the fixed capital, but the state businesses and organizations – 33 percent.

Some 72.6 percent of the total investments were made in construction and installation work for the reporting period.

Some 7.82 billion manat were invested in the country’s oil and gas sector in January-November 2016.

The total investments worth 8.66 billion manat were made in the Azerbaijani industrial sector in January-November 2016 or by 14.9 percent less compared to January-November 2015.

The investments worth 7.765 billion manat were made in extractive industry in January-November 2016, which is by 13.5 percent less than in January-November 2015.

The investments worth 283 million manat were made in production, distribution and supply of electricity, gas and heat in January-November, which is 49.9 percent more than in the same period of 2015.

Some 41 percent of the total investments accounted for the domestic investments.

Investment indices in January-November 2016:

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

Amount in mln manat

Specific weight in percent

Investments in total

13009,1

100,0

Foreign investments

7678,1

59,0

Domestic investments

5331,0

41,0

The foreign investments worth 7,678.1 million manat were made in Azerbaijan's economy in January-November 2016 or by 23.3 percent more compared to January-November 2015.

An increase in foreign investments is a positive factor and points to the fact that Azerbaijan is a potential for foreign investors.

The investments worth around 6,514.5 million manat (84.8 percent) made in Azerbaijan's economy by foreign countries and international organisations accounted for investors from the UK, Russia, Malaysia, Turkey, Sweden, Japan, US and Iran in January-November 2016.

The UK is Azerbaijan’s largest investor. Currently, 473 companies with the British capital are operating in the country. The UK companies act as contractors in the projects being implemented in Azerbaijan. Azerbaijan and the UK successfully cooperate in various sectors of the economy, namely, banking, ICT, water supply, tourism, health care.

Most of foreign investments in Azerbaijan's fixed capital during the reporting period was made in April - 935.1 million manat, while least of foreign investments - in May (544.1 million manat).

Most of foreign investments in total investments made in Azerbaijan’s fixed capital in January-November 2016 was registered in January - 71.5 percent of total investments in fixed capital. Least of foreign investments was registered in October - 47.6 percent.

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