The Gross Domestic Product (GDP) of Azerbaijan increased by 11.3% and made up AZN 2286mln in January 2008. The growth rate made up 35.4% less than the same period of 2007.
The amount of the GDP per capita made up AZN 268.5 ($317,7), an increase of 10%.
The amount of the production in all spheres of the economy increased by 11.9% and made up 72.4 of the GDP where 65.8% (AZN 1503.7mln) fell on industry. The specific weight of the service sector in the GDP decreased from 23.9% to 22%. Net taxes from the production and import made up 5.6% in the GDP.
The drop in the rates of economic growth may be explained not only decrease of the growth rate in the industry, but also in the sphere of communications and paid services. In January, the industrial production and services increased by 11.3% and made up AZN 2 022.6mln. The growth in 2007 made up 152.4%.
The decrease of the growth rate in the industry is explained through decrease in the volumes of production of oil products (7.7%), wares form the rubber and plastic mass (22.4%), transport means (24.5%), in other spheres of extractive industry (10.2%).
Growth was again observed in the Public sector, which made up 6.6% in January. The specific weight of the industrial products produced in the Public sector made up 20.7 (AZN 419.61mln).
In addition, growth was observed in import and export operations. The growth of the Azerbaijani export equaled 41.87% up to $626.187mln and import - $494.313mln (26.91%). Nearly 87.8 of the export operations fell on oil and oil products. In January Azerbaijan exported 590,378 tons of oil and 189,029 tons of oil products.
The dominant role of oil and gas production is continuing in the GDP because their production is increasing. The oil production made up 3.77mln tons, an increase of 9.1% and gas production - 1 339.6mln cu.m under growth of 99.4%. At the same time, Azerbaijan International Operating Company increased oil and gas production by 12.7% and 2.9% relatively.
Moreover, rise was observed in the production of machine and equipment by 25.3%, production of wood and wooden wares by 58%, construction materials by 3 times, foodstuffs by 12%, etc.
In January 2008 growth rate in agrarian industry rose as compared to last year. In January, the production rose by 4.7% compared to 2007.
The investments put in the country's economy also increased. A total of AZN 367.2mln was invested in economy at the expense of all sources, which is 5.1% up as compared to 2007 when it was 3.5%. The major reason for drop in investments is the completion of the construction works within the large oil projects, but growth was observed in demand by the construction of industrial facilities in this sector, where AZN 310.8mln or 84.6% of all investments was spent.
Thus, growth rate of consumer demand continues drop. The retail good turnover rose by 14.7%, while the community services grew 29.1%. The growth rate of retail goods turnover and commercial services increased at the beginning of 2007, when the rise comprised 14.1% and 41.9% respectively
| Value Added Price In mln manats | Special weight, in % | Real rise, in % | |
| GDP in total | 2286,0 | 100,0 | 111,3 |
| production of goods | 1654,1 | 72,4 | 111,9 |
| including - industry | 1503,7 | 65,8 | 112,8 |
| - agriculture | 61,8 | 2,7 | 104,7 |
| - construction | 88,6 | 3,9 | 105,3 |
| Production of services | 501,9 | 22,0 | 110,3 |
| Including: - transport | 105,0 | 4,6 | 109,4 |
| - communications | 47,4 | 2,1 | 140,3 |
| - trade and repair | 146,9 | 6,4 | 114,3 |
| - hotels and restaurants | 19,5 | 0,9 | 132,8 |
| - social and different services | 183,1 | 8,0 | 101,0 |
| Net taxes on products | 130,0 | 5,6 | 109,1 |
| Defliator | 115,7 | ||
Sources: State Statistics Committee
In January 2008, the growth rate of prices on consumer goods and tariffs on services went up by 2.5%. According to the State Statistics Committee, in this period the price on food products increased by 3.2%, non-food products - 1.5%, whereas tariffs on services rose 1.8%.
The State Committee fixed in January 2008 that prices of bakery rose 1.5%, tea and coffee - 1.9%, beer - 2.2%, alcohol drinks - 2.3%, oil and fats - 3.6%, dairy, cheese, and eggs 2.5%, fish - 2.3% and vegetable - 5.1%, meat products - 3.8%, tobacco - 1.9%, fruits 6.4%.
As a result of January, the nominal incomes of the population rose 31.4%, and comprised AZN 143.2mln. The nominal incomes increased by 3% 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.