1Q2021 volume of fixed capital for Azerbaijan's economy down

Finance Materials 25 May 2021 17:05 (UTC +04:00)
1Q2021 volume of fixed capital for Azerbaijan's economy down

BAKU, Azerbaijan, May 25

By Zeyni Jafarov - Trend:

The amount of fixed capital invested in the Azerbaijani economy during the first quarter of 2021, having decreased by 19.4 percent, amounting to 2.4 billion manat ($1.4 billion), Trend reports referring to the review of the monetary policy of the Central Bank of Azerbaijan (CBA).

In accordance with the CBA’s report, 26 percent of the investments accounted for the public sector while 74 percent - for the private sector. Over 1 billion manat ($590 million) was transferred to the non-oil and gas sector (down by 32.2 percent compared to 1Q2020).

Some 52.1 percent of investments in fixed capital were formed through internal sources while 47.9 percent - through external sources.

The funds from enterprises and organizations prevailed in the distribution of funds allocated for fixed capital upon financial sources.

So, over the past quarter, the share of funds of enterprises and organizations amounted to 67.5 percent compared to 66.9 percent in 1Q2020.

This is followed by budget funds with a total share of 10.6 percent (decrease of 7.1 percentage points) and bank loans – 8.9 percent (decline of almost 2 times).

The share of personal funds of the population accounted for 8.1 percent, and other funds amounted to 4.9 percent.

Due to the consequences of the COVID-19 pandemic, which began to show itself in Azerbaijan from the end of the first quarter of 2020, there has been a contraction in domestic demand factors, which are the main driving force of economic growth.


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