General economic situation

Analysis Materials 7 June 2009 12:01 (UTC +04:00)

The Gross Domestic Product (GDP) of Azerbaijan increased 4.3% and made up AZN 8.9bln in January to April 2009. The amount of the GDP per capita composed AZN 1042.9 ($1296.0), an increase of 3% compared to the same period of 2008. The rate of economic growth was 10.7% as compared to the same period of the last year (115%). 

The drop in the economic growth compared with January - April 2008 can be explained not only through the reduction of growth rates in the industry, but also in cargo transportations, paid services to population. The reduction is observed almost in all macroeconomic indices, including in the industry - 13.8%, transportation - 11.5%, communication services - 30.8%, retail trade turnover - 9.6%, paid services to population - 13.5% and incomes of the population - 13.1%.

The amount of the production in all spheres of the economy made up 58.0% of the GDP where 43.5% (AZN 3920.6mln) fell on industry. The specific weight of the service sector in the GDP made up 32.5%. Net taxes from the production and import made up 9.4% in the GDP.   

In January to April 8.4% growth of production was recorded in the non-oil sector, which increased its share in the GDP to 50.7% while the share of oil and gas sector reduced to 39.9%.   

Value Added Price 

In mln manats

Special weight, in %

Real rise, in %

GDP in total




production of goods 





- industry




- agriculture 




- construction




Production of services





- transport




- communications




- trade and repair




- hotels and restaurants




- social and different services




Net taxes on products






Source: State Statistics Committee

In January - April 2009 the amount of industrial production in Azerbaijan composed AZN 5577.3mln, which is 0.5% lower than January - April 2008. The reduction in the indices in the industry is explained firstly through the reduction of production in extractive industry, secondly through the reduction in the production of sewn and knitted wares (17.9%), shoes (48.1%), production of chemical industry (78.4%), metallurgical industry (48.8%). In general, 6.9% drop was recorded in January to April 2009 in the processing industry.

The amount of production in the extractive industry reached AZN 3834.4mln (68.8% of the gross industrial production), in the processing industry (22.7%) - AZN 1269.2mln, and in power engineering, gas and water sectors (8.5) - AZN 473.7mln.

The drop in the oil production was 10.2%, but 0.9% increase was observed in gas production and 0.9% in oil refining.

The specific weight of the industrial production and services in the private sector made up 74.5% (AZN 4152.6mln). Reduction in public sector was 3.6%, but 2.0% growth was recorded in the private sector.   

Growth in the agrarian production because of State care for the farmers was 4.6% in January to April. During this period, the volume of agricultural production increased 11.3%, including plant growing - 9.8%, livestock - 4.3%.

In addition, growth was observed in import and export operations. Azerbaijani export increased 8.31% to $3537.1mln and import - $1817.2mln (a decrease of 5.60%), and the black ink reached $1719.9mln. Nearly 91.75% of the export operations fell on oil and oil products.

Nearly AZN 2159.1mln was invested in the economy of Azerbaijan in January to April 2009, an increase of 5.2% from the figures of the last year. In particular, in April 2009 AZN 520.2mln was invested in the economy of Azerbaijan, which allowed to talk about the continued growth after 24.4 percent drop of investments in January.

In January - April 2009 the growth in the volumes of retail commodity turnover and commercial services to the population continued and totaled 9.9% in the annual calculation. In January - April 2009 the retail networks of Azerbaijan sold consumer goods in amount of AZN 3670.6mln, which is 8.1% more compared with the same period of last year.

In January to April 2009, the inflation growth rate made up 6.5% compared to the same period of 2008. In January to April 2009 the prices of the consumer goods and tariffs on the services reduced 0.2% compared with March 2009. Over the reported period, the prices for foodstuffs reduced 0.3% and non-foodstuffs - 0.2%, and prices of the services remained unchanged.

In January to April 2009, the nominal income of the population totaled AZN 6738mln, which is 20.3% more compared to 2008. During this period, the nominal income per head made up AZN 781.2, which exceeds the figure in 2008 by 18.9%. The rise in salaries in various spheres of economy and rise in social benefits also contributed to the growth in population income. Population spent 68.0 percent of their income on goods and services, 10.4 percent - payment of taxes, duties, and social and insurance fees, 31.6 percent - accumulation of capital.

As a result of April, the exchange rate of the national currency with respect to the USD decreased 50 points. The rate of the USD in Azerbaijan during the month increased from 0.8029 AZN/USD to 0.8034 AZN/USD.

The rate of EUR rose in Azerbaijan. During the reported period, the rate of Euro in Azerbaijan increased 78 points (from 1.0606 AZN/EUR to 1.0684 AZN/EUR).

In April the rate of manat in relevant to the USD composed 0.80 manat, Euro - 1.06 manat, Russian ruble - 2.40 manat for 100 rubles.