Investments in economy in Azerbaijan (january 2013)

According to the Azerbaijani State Statistics Committee, 617.7 million manat was invested in the economy of Azerbaijan in January 2013 from all financial sources, increasing by 32.4 percent compared to the figures of the same period of 2012, which indicates high investment activity in the country.

The main sources of investments in 2012 are as follows:

• funds of enterprises and organizations - 271.2 million manat (a decrease of 4.1 percent compared to January 2012);
• budgetary funds - 267.9 million manat (an increase in 3.3 times);
• off-budgetary funds - 18.6 million manat (a decrease of 16.6 percent);
• bank loans - 39.9 million manat (a decrease of 35.1 percent);
• funds of population - 20.1 million manat (an increase of 0.7 percent).

Apparently, increased investments in January 2013 are due to increased investment activity at the expense of budgetary funds. Other funding sources in the first month of the year show relative passivity. Azerbaijani Cabinet of Ministers approved the State Investment Program for 2013 at the beginning of the year.

Investment program for 2013 envisages the completion of financing of investment projects that started earlier, as well as a number of new projects, including preparations for holding the first European Olympic Games in Baku in 2015. According to the Law on the State Budget for 2013, the capital investment of the state budget will amount to 6.915 billion manat, which is equivalent to 34.84 percent of the expenditure part of budget.

According to the State Statistics Committee, private enterprises and organizations invested 232.9 million manat (37.7 percent of total investments) in Azerbaijan's economy and public enterprises and organizations - 384.8 million manat (62.3 percent).

Volume of investments in construction and assembly work grew by 47.4 percent.

Investments worth 371.6 million manat were used for the construction of production facilities, while non-production facilities - 246.1 million manat.

Some 62.7 percent of investments in fixed capital (387.5 million manat) was directed at the development of the country's non-oil sector, 11.1 percent (68.4 million manat) - non-oil industrial sector, 230.2 million manta was invested in oil sector. Capital investments in the non-oil sector increased by 66.6 percent, oil sector - decreased by 1.6 percent.

The total investments in the industry totaled 298.6 million manat with an increase of 21.4 percent. Some 35.4 million manat was invested in the processing industry (increased by 3.8 times). During the reporting period, the investments in the extractive sector hit 230.3 million manat, which is 0.5 percent less than investments in January 2012. Totally, 48.4 percent of investments fell to the industrial sector.

Of the total capital investments, 64.6 percent accounted for domestic investment, which increased by 81.1 percent during year. Most (86.6 percent) of domestic investments was made in the state-owned enterprises and entities, and only 13.4 percent - private enterprises.

Investment indices in January 2013:

(Source: State Statistics Committee and calculations by Trend")

The total volume of foreign investments in Azerbaijan's economy in Jan. 2013 amounted to 218.9 million manat, which is 9.7 percent less than the same period of 2012.

In January, 86.5 percent (189.5 million manat) of investments in Azerbaijan's economy made by foreign countries and international organizations fell to investors from the UK, U.S., Japan, Norway, Turkey and France.

As before, the UK continues to retain its leading position in this list. Its share in total foreign investments hit 36.4 percent, while its investments amounted to 79.7 million manat.

Of the international financial institutions, the biggest amount of investments was allocated by WB in amount of 20.6 million manat. WB projects cover different spheres of the country's economic life.