Azerbaijanis to be More Economical in 2009

Business Materials 21 November 2008 17:32 (UTC +04:00)

Azerbaijan, Baku, 20 November / Trend /

Ellada Khankishiyeva, Director of Trend Analytic Center

Due to the panic moods of the Europeans regarding the reduction of incomes and increase in the number of paupers in 2009, the forecasts on the standard of living of Azerbaijanis next year appear optimistic.

According to the forecasts of the Government regarding the income and expenditure balance of population, in 2009 the profits of the citizens of Azerbaijan will grow by 22.5% to AZN 22.77bln. However, alarming tendencies in the world financial market and high inflation will affect the growth rate in the incomes, which will reduce by 7.4% as compared to 2008.

The incomes form the entrepreneurship activity will top for its amount in the structure of incomes of population in 2009. Their amount next year will be AZN 11300mln, or 49.6% of all incomes of population.

Second largest index of the incomes of the population is wage. According to the forecasts, its average monthly amount will compose AZN 353 in 2009, which is 26% more than the forecasts of 2008. The total amount of wage fund will reach AZN 7470mln, or 32.8% of all incomes.

Social transfers are the significant, but the largest article of the incomes of the population is estimated in amount of AZN 1851.3mln (8.1%) for the next year. It includes pensions, allowances and different grants, which are basic source of income for the socially vulnerable category of population.

The transfers obtained by the Azerbaijanis from abroad are the important element of financing housework and influence on the reduction of poverty. For their amount, they even exceed the social transfers of state. According to the forecasts of government, in 2009 their amount will reach AZN 2050mln, which is AZN 198.7mln, or 11% more than the social transfers.

The smallest article of incomes is the incomes from the property, which total AZN 102mln for the next year, or 0.45% of the total amount of incomes of the population of Azerbaijan. It is necessary to note that the significant amount from this form of activity remain "in the shadow" and do not enter official calculation.

According to the same forecasts of the Government, the expenditures of population will compose AZN 18145mln next year, which is 20.3% less than the profits. The growth rate in this index will reduce by 10% as compared to the forecasts of 2008 (AZN 14567mln).

The basic share of expenditures - 87.2% or AZN 15825mln will be made up of the purchase of goods and payment of services next year. But next year AZN 2320mln will be spent on the required payments (taxes) and the voluntary contributions by population next year, which is 21.6% higher than 2008.

AZN 4628.3mln saved by population will be directed toward the accumulation of non-material (AZN 565mln) and material assets (AZN 4063.3mln). AZN 780mln from the material assets will be in the form of deposits and securities. AZN 2066mln will be spent on the operations with the foreign currency, while on the exchange of available money the population will save AZN 1217.3mln.

Thus, according to the forecasts on the income and expenditure balance of population, the Azerbaijanis will have significant incomes next year; however, the unpredictability of the consequences of the global financial crisis and the fears before the uncertainty will stimulate the saving activity of citizens.