BAKU, Azerbaijan, November 2. Fixed capital investments in Azerbaijan are expected to grow by one percent, including a three percent growth in fixed capital investments in the non-oil and gas sector, given the current decline of investments within the major oil and gas contracts, next year, Trend reports.
This issue has been reflected in the draft state budget of Azerbaijan for 2024 presented by the Ministry of Finance.
The macroeconomic forecasts for 2024 and the subsequent three years (assuming that the average annual export price of one barrel of oil for the years 2024-2027 will be $60), prepared by the Ministry of Economy of Azerbaijan, envisage a 2.4 percent growth in GDP next year, reaching 118.4 billion manat ($69.76 billion) in real terms.
This growth includes a 4.6 percent increase in non-oil and gas GDP to 84.2 billion manat ($49.54 billion) in real terms. Next year, the share of the non-oil and gas sector in the GDP is expected to be at 71.1 percent, marking a 6.2 percentage point increase compared to the current year's forecast.
According to the projections, in 2024, the GDP in the oil and gas sector in real terms is expected to decrease by 1.7 percent.
Investments in fixed capital in Azerbaijan amounted to 12.7 billion manat ($7.4 billion) from January through September 2023, which is 21.3 percent more year-on-year. The volume of investments in the oil and gas sector during this period increased by 18.1 percent and in non-oil sectors by 23.2 percent.
In 2022, investments in fixed capital in Azerbaijan amounted to 18.2 billion manat ($10.7 billion), which is 5.5 percent more year-on-year. Investments in the country's non-oil sector grew by 13.6 percent compared to 2021.