A favorable tendency in Azerbaijani economy in 2005 affected the dynamic of macroeconomic indices of incomes and living condition of people. As of preliminary data calculated for 2005, the poverty ratio in the country fell 29% against 40.2% in 2004. In 2005 the living subsistence increased to 213,000 manats in connection with inflation, whereas in 2004 it was 194,000 AZM. However, the State Statistics Committee announced the final data on the issue will publicized in February.
Official data on community incomes testify in 2005 the net money incomes grew 27% as compared to similar period of last year 27% and comprised 7792.3 million manats. Per capita incomes with a rise of 25.7% made up 942 manats, while average monthly amount was 78.5 manats or $82.2, which is 16 manats more than 2004.
Table 1. Major indices, characterizing money incomes of the population
|
INDICES |
Actual figures in 2005 |
As compared to 2004 |
As compared to 2004, in % |
|
Net money incomes of population, in bn manats. |
7792,3 |
127 |
118,3 |
|
Per capita population, in ths manats. |
942 |
125,7 |
118,1 |
|
Money incomes in hands, in bn manats. |
7399,3 |
127 |
111,8 |
|
Per capita population, in ths manats |
894,5 |
125,7 |
111,6 |
Source: State Statistics Committee
In this period 70.3% of the community expenses were spent on purchase of goods and services, 5.1% - on obligatory payments and fees, 24.6% - purchase of foreign currency and increase of savings.
As compared to 2004 the community expenses in tax payment grew 4%, which can be explained with tax rates on social insurance, as well as a rise in communal tariffs for gas and water. There is also a 1.5%-rise in expenses for purchase of foreign currency, which hints that the people secure themselves from denomination of manat. Real money incomes after the payment of taxes and voluntary payments comprised 7399.3 million manats, or 27% more a compared to last year.
In this period the expenses turned out 149.3m manats down as compared to incomes and made up 7643.0m manats, or 26% up as compared to 2004.
Thus, last year also maintained a tendency of excess of money incomes over expenses, which was peculiar for last few years.
The salaries remained to be a major source of socio-economic indices, exactly characterizing the welfare of working people. Minimal salary rose twice in 2005: first from 1 January 2005 to 125,000 AZM, second 150,000 AZM in accordance with the presidential decree dated to 16 September 2005. It actually promoted a rise in average monthly salary, which comprised 117.9 manats ($128.15 in average exchange rate fixed in this period), or 21.9% up as compared to 2004.
Rise in wages in the country was observed in come enterprises in 2005. In March 2005 Azerigas JSC increased the salaries 40%. In May Azernerji took the same step and increase comprised 33%. Now the average wages in the company is equal to 150 manats. From 1 July the State Oil Company of Azerbaijan increased the monthly salaries of its employees by 20% and now the average salary rate in the company is 234.4 manats. After the November strike of the Azerbaijani workers McDermott, a US company, raised the salaries 20% from December 2005. The wages of local employees of Bos Shelf were also increased 20%.
In January to November the social payments paid at the job places made up 7.8bn manats. Major part of benefits fell on employees of electricity gas and water supply, transport, store economy, communications and education.
In accordance with official statistics, as of 1 January 2006 a total of 3850,200 economically active people were employed in the Azerbaijan, or 46.3% of all population. In December 2005 the number of officially registered unemployed people made up 56,395 people, of which 51.6% are women. 6 people pretended at one job place. In 2005 average monthly unemployed allowances made up 53.6 manats, or 42.3% of average salary.
As to living conditions of pensioners, some steps were taken for increase of pensions in 2005. As of 1 January 2006 minimal pension rate in the country comprised 25 manats, though minimal wage rate in the country was increased to 30 manats.
According to chairman of the State Social Security Fund (SSSF), the work over injecting changes to the pension legislation. After injecting the changes the notion of minimum pension will be removed from use. The new changes are expected to enact in 2006.