Investments in Azerbaijan's economy (January-March 2011)

Nearly 1.775.8bln manat was invested in the economy of Azerbaijan in January-March 2011, an increase of 2.5% from the figures of the same period of the last year.

Especially, in March 2011, 655.5 million manat was invested in Azerbaijan's economy, which is 17 percent more than investments in March 2010.

The main sources of investment in the first quarter of 2011 are:
funds of enterprises and organizations - 1 059.0 billion manat (increasing by 18.1 percent compared with January-March 2010); budgetary - 487.3 million manat (decreasing by 21.5 percent), off-budgetary funds - 46.3 million manat (with a decline of 58.8 percent), bank loans - 117.3 million manat (increasing by 99.0 percent), funds of population - 64.9 million manat (increasing by 53.1 percent).

As seen, the increase in investments in March 2011 is due to an increase of funds of enterprises and organizations, bank loans and funds of population. For this reason, in March private investment after a long break exceeded government investments in the economy.

According to the data provided by the State Statistics Committee, private enterprises and organizations invested 891.7 million manat (50.2 percent of total investments) in Azerbaijan's economy and public enterprises and organizations - 884.1 million manat (49.8 percent). Major share of governmental investments are directed at implementing transport and infrastructure projects.

In January-March 2011, investments in the oil sector accounted for 33.9 percent of all capital investments in the economy. Thus, in January-March 2011, the investments in the oil sector totaled 601.7 million manat, while non-oil sector - 1 174.1 million (66.1 percent).

The gross investments in the industry totaled 818mln manat with an increase of 6.3%. About 180.6mln manat was invested in the processing industry (+5.3 times). During the reported period, the gross investments in the extractive sector composed 590.6mln manat, which is 3.4% less than investments in 2010. Generally, 46.1% of investments fell on the industrial sector.

Investments for repair and construction work made up 1 043.4 million manat (58.8 percent of total investments in the construction sector). Investment for the construction of production facilities totaled 876.9 million manat, while non-production facilities totaled 898.9 million manat.

Of the total capital investments, 73.3 percent accounted for domestic investment. Most (60.5 percent) of domestic investments was made in the state-owned enterprises and entities, and only 39.5 percent - private enterprises.

Investment indices in January-March 2011 :

(Source: State Statistics Committee and calculations by Trend)

Total volume of foreign investments in Azerbaijan's economy hit 473.4 million manat in the first quarter of 2011, which is 10.3 percent more compared to the same of period last year. Great Britain continues to keep leading positions on volume of investments in Azerbaijan. The country's share in volume of foreign investments hit 43.1 percent. British investments hit 203.8 million manat.

In the first quarter, 88 percent (416.8 million manat) of investments of foreign countries and the international organizations in the Azerbaijani economy accounted for investors from Great Britain, the U.S., Japan, Norway, Korea, Turkey, France, Czech Republic.

Of the international financial institutions, the biggest amount of investments was allocated by WB in amount of 32.4 million manat with weight of 6.9 percent. WB projects cover different spheres of the country's economic life.