In January to August 2007 the GDP grew 32.4% and made up 14.816.4mln AZN at current prices. The growth pace turned out 1.9% less than 2006.
Major factor causing drop in the economic growth was the sharp fall in industry. In January to August the industrial production and services of industrial character rose 32.7% and comprised AZN 12.248.5mln. Last year the figure was 40.5%.
The drop is explained with 1.7%-cut in production in the state sector, which is linked with the cessation of manufacturing at chemical enterprises due to rise in prices of energy resources (drop in production was by 47.2%). It was linked with the cut in chemical output and electricity, gas and water production (by 8%). Special weight of production in the public sector and services comprised only 21.2%.
Meanwhile, Ganja Automobile factory launched the production of MAZ trucks.
The output of oil production and oil refinery plants exceeded the volume fixed January to August 2007 by 41.4% to 28,524mln tons. The oil production rose 44.1% and made up 24.807mln tons, while gas production - 6.549.4mln cu m with a rise by 49.1%.
Moreover, rise was observed in the production of plastic and rubber wares by 49.6%, machine and equipment by 80.3%, transport means by 2.4 times, production of wood and wooden wares by 27%, foodstuff by 9.7%, non-metallic mineral substances 17.8%.
In January to August 2007 growth rate in agrarian industry rose as compared to last year. So, the output increased by 3% against 0.7% in 2006.
The investments put in major capital fell inconsiderably. A total of AZN 3.827.7mln was invested in economy at the expense of all sources, which is 11.6% up as compared to 2006 when it was 11.7%. The major reason for drop in investments is growth in demand by the construction of industrial facilities in this sector, where 3.184.9mln or 83.2% of all investments was spent.
Thus, growth rate of consumer demand continue drop. The turnover of retail good turnover rose 14.7%, while the community services grew 32.9%. The growth rate of commercial services increased, while in the retail goods turnover fell, as it seems on the results of 2006, when the rise comprised 12.5% and 38.9% respectively
Major part of demand was satisfied at the expense of import, which grew by 1.85% and comprised $3.414.71mln. The volume of import made up $3.991.904mln, or 9.12% less as compared to last year. The foreign trade ended in balance with $577,197mln in black.
Major reason for rise in import operations was increase in the amount of furniture, pharmceutics, food products, ferrous metal and ware of it, wood and products made of it.
| Value Added Price In bn manats | Special weight, in % | Real rise, in % | |
| GDP in total | 14 816,4 | 100,0 | 132,5 |
| production of goods | 10 781,8 | 72,8 | 141,3 |
| including - industry | 9024,3 | 60,9 | 149,6 |
| - agriculture | 722,2 | 4,9 | 103,0 |
| - construction | 1035,3 | 7,0 | 107,8 |
| Production of services | 2865,1 | 19,3 | 111,7 |
| Including: - transport | 746,9 | 5,0 | 115,6 |
| - communications | 245,9 | 1,7 | 119,8 |
| - trade and repair | 798,9 | 5,4 | 114,7 |
| - hotels and restaurants | 107,3 | 0,7 | 123,7 |
| - social and different services | 966,1 | 6,5 | 103,8 |
| Net taxes on products | 1169,5 | 7,6 | 108,8 |
| Defliator | 101,2 | ||
Sources: State Statistics Committee, calculations by Trend
In January to August 2007, the growth rate of prices on consumer goods and tariffs on services went up by 16.2%. According to the State Statistics Committee, in this period the price on food products increased by 14.8%, non-food products - 11%, whereas tariffs on services rose 26.6%.
The State Committee fixed in August 2007 that prices of bakery rose 6.6%, mineral water, juices, and cool drinks - 0.4%, tea and coffee - 0.5%, beer - 0.2%, alcohol drinks - 1.2%, oil and fats - 2.6%, dairy, cheese, and eggs 0.7%, fish - 0.9 and vegetable - 2.2%. However, prices of vegetables fell 6.1%.
As a result of January to August net incomes of the population rose 39.7%, and comprised AZN 8.089.2mln. The net incomes dropped 19.1% as compared to last year.
Major tendency at the fiscal market was the consolidation of manat rates with respect to dollar. A tendency on increase of rates, observed over the past period, reflects the real state and is linked with increase of oil revenues in the country.
The National Bank of Azerbaijan (NBA) holds the policy of floating rate as a factor retaining inflation. In the other hand, serious developments are observed worldwide. This depreciation of dollar in regard to world leading currencies and it is seemed not pass by Azerbaijan. On his respect , the re-evaluation of assets in dollar is done. The process will take place in Azerbaijan, too.