General economic situation in Azerbaijan (2011)

2011 was marked by the successful execution of all social and economic tasks of the country and the implementation of all plans, preservation of simple inflation, reaching a record level of investment with a predominance of domestic capital investment, job creation, construction of social facilities, reduction of poverty and unemployment. The ratio of external public debt to GDP was consistent with international standards. It hit 7.3 percent. The strategic currency reserves exceeded $ 40 billion.

According to the Azerbaijani State Statistics Agency, Azerbaijan's GDP increased by 0.1 percent in 2011. The current price of GDP indicator reached 50.1 billion manat.

GDP growth in Azerbaijan in 2011 was fully ensured by non-oil sector. This is the result of economic diversification and the policy of minimazing the dependence on the oil sector.

GDP growth was 0.1 percent and its volume per capita exceeded $7,000. This further strengthened the country's position in the list of the countries with high average income.

Nominal GDP growth hit 17.9 percent. The GDP volume per capita amounted to 5.530.6 manat ($7.003.4).

Non-oil sector increased by 9.4 percent in 2011, amounting to 48.3 percent of GDP. The share of oil and gas sector and processing industries was 51.7 percent of GDP, while reducing the output by 9.3 percent.

The decline in oil production in the country had a negative impact on shipping of goods. The amount of added value created as a result of rendering the transportation services decreased by 0.8 percent.

The significant growth was observed in other sectors of the economy. Value added increased by 22.6 percent in the sphere of housing and food, construction - 20 percent, the field of information and communication - by 11.8 percent, trade and services - 10.2 percent, agriculture, forestry and fishery - by 5.8 percent, the social and other services - 5.7 percent.

The total volume of production in all sectors of the economy declined by 3.5 percent and amounted to 33.9 billion manat. The major part - 53.9 percent of GDP (27 billion manat) falls to the industry. The ​​value-added production in the sphere of services increased by 6.5 percent and amounted to 13.2 billion manat compared to 2010.

Net taxes on products and imports increased by 8.2 percent and amounted to 2.98 billion manat or 6 percent of GDP.

Source: the Azerbaijani State Statistics Committee

In 2011, the amount of industrial production in Azerbaijan hit 34.5 billion manat, which is 5 percent less than the same period of 2010.

The share of non-state sector decreased by 9.9 percent and hit 81.5 percent of the total industrial production compared to the same period of last year. About 92.7 percent accounted for manufacture of industrial products and 7.3 percent for industrial services.

During the reported period, the volume of production in the extractive industry decreased by 8.4 percent, reaching 26.9 billion manat with weight of 77.9 percent of all industrial production. The volume of oil extracted during the period hit 45.4 million tons and natural gas production - 25.7 billion cubic meters.

Production in non-oil industrial sector increased by 11.1 percent. In particular, the volume of manufacturing production was 5.9 billion manat, increasing by 7.1 percent. Significant growth was observed in the manufacture of rubber and plastics goods (47.2 percent), metallurgy (85.9 percent), chemicals (27.1 percent), furniture (24.5 percent), clothing (13.9 percent).

In 2011, the steel industry and the Azerbaijani enterprises of finished metals produced goods and rendered services worth 283.3 million manat. The volume of production in the metallurgy increased by 1.9 times, and the production of finished goods reduced by 7.3 percent.

In 2011, Azerbaijan reduced gold production by 15.2 percent, silver production - by 9.8 percent. During 2011 the country produced 2,992 kg of precious metals, or 13 percent less than their production in 2010. The storage reserves of precious metals hit 104 kg (47 kg in December). In 2011 the production hit 1,775 kg of gold and 1,217 kg of silver. About 142 kg of gold and 95 kg of silver were produced in December. The gold stocks hit 48 kg (+16 kg in December) and 44 kg of silver (+19 kg).

In 2011, Azerbaijan produced 727 trucks, or 5.2 percent less than in 2010. The country produced 556 passenger vehicles, or 14.4 percent more compared to 2010.

The food production increased by 5 percent. Production of sausage products in the country increased by 12.3 percent, amounting to 2,000 tons, meat - by 4.6 percent (258,000 tons), milk - 5.4 percent (708,900 tons), butter - 0.8 percent (21,100 tons), cheese and curd - by 2.2 percent (708,900 tons).

According to the State Statistics Committee, the increasing state concern for the agricultural sector contributed to positive results in this sector in 2011. In 2011 the value of agricultural production in constant prices increased by 5.8 percent compared to 2010 and amounted to 4.525.2 billion manat, including crop production - by 8 percent, animal husbandry - 3.5 percent.

In 2011 foreign trade turnover with 149 world countries amounted to $36.327 billion, or 29.92 percent more than last year. The volume of exports in 2011 increased by 24.39 percent and hit $ 26.571 billion compared to 2010. The volume of imports increased by 47.81 percent and amounted to $9.756 billion. Azerbaijan exported 2,082 kinds of goods and imported 6,233 kinds of various goods. As of 2011, the exports exceeded the imports. This formed black ink in the foreign trade worth $16.815 billion.

In 2011, about 12.776.4 billion manat were invested from all financial sources to develop the economic and social spheres in Azerbaijan, or 27.3 percent more than in 2010. In particular, about 2.759.2 billion manat was invested in the Azerbaijani economy in December 2011, or 37.2 percent more than investments in main capital in December 2010. This figure is a record for the Azerbaijani economy.

In 2011 the volume of retail trade turnover and paid services rendered to the population increased by 9.9 percent compared to 2010 and amounted to 21.7 billion manat. In particular, about 74.4 percent fell to retail trade turnover, 20.4 percent - the share of paid services.

In December 2011, consumer prices and tariffs for services increased by 0.9 percent compared to the previous month and increased by 7.9 percent in 2011 in accordance with 2010 (data from the State Statistics Committee).

The state budget revenues in 2011 increased by 37.7 percent and hit 15.7 billion manat, and expenses - by 30.8 percent to 15.4 billion manat. The budget was executed with a surplus. The payments ensured by the Ministry of Taxes and transferred to the state budget increased by 27.5 percent, the State Customs Committee - 3.6 percent. Tax receipts for non-state sector increased by 40.5 percent, non-oil sector - 22 percent.

According to the Azerbaijani State Statistics Committee, in 2011 nominal income of the Azerbaijani population totaled 30.633.5 billion manat, or 19.6 percent more than in 2010. During this same period, nominal income per capita increased by 18.1 percent and amounted to 3.383.8 manat. The rate of income growth in 2011 exceeded the growth rate for this index in 2010 thanks to the social programs and the governmental decrees. For example, in 2010 nominal income increased by 13.3 percent, while income per capita - by 11.9 percent.

About 94,000 new jobs were created in 2011. About 73,000 of them are constant. More than 1 million new jobs were created from 2003 to 2011 by implementing the program directed against unemployment. In 2011, the unemployment rate in Azerbaijan more decreased and amounted to 5.4 percent. The poverty level once again dropped to 7.6 percent.

The rate of manat maintained stable. In 2011 the average exchange rate of manat to the U.S. dollar was 0.79 manat per dollar, compared to the euro - 1.04 manat per euro, compared to the Russian ruble - 2.50 manat to 100 rubles.