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General economic situation in Azerbaijan (2013 year)

Analysis Materials 12 February 2014 17:04

Macroeconomic and microeconomic indices of Azerbaijan in 2013 reflect the continuing development of the national economy, by showing main changes in its structure.

The completion of two large-scale state programs - "State program on socio-economic development of Baku and surrounding settlements in 2011-2013" and the second "State program on socio-economic development of the country in 2009 -2013" is the most important event in 2013. Their implementation has made a significant contribution to ensuring and supporting the development of the important infrastructure, strengthening the food security and improving the living conditions of the Azerbaijani population.

The Azerbaijani Ministry of Economy and Industry is finalizing the preparation of the next phase of planning the development of the national economy - the third state program of development of Baku and surrounding settlements, as well as the third state program of socio- economic development of regions. These documents outline the priorities and put the key objectives in the medium term. Further maintenance of macroeconomic stability, improving the competitiveness of the national economy, the acceleration of the country's effective integration into the global economy, improving the business and investment climate, the intensification of economic diversification, ensuring the sustainable and balanced development regions of the country's regions and the development of human capital through the sustainable social policy are among them.

Azerbaijan's GDP total volume amounted to 57.7 billion manat in 2013, which exceeds the figure in 2012 by 5.8 percent.

GDP per capita increased by 4.4 percent to 6207.3 manat ($7912.5) per year.

During the reporting period, some 63.4 percent of Azerbaijan's GDP was formed in production, about 46.3 percent in industry, 11.8 percent in construction, 5.3 percent in agriculture, forestry and fishing. About 30.2 percent of the gross product was created in the service sector.

Net taxes on production and imports amounted to 6.4 percent of Azerbaijan's GDP.

According to the State Statistics Committee, some 7.1 percent of GDP in the service sector fell to the trade and repair of vehicles, 5.4 percent to transport and warehousing, 1.8 percent to tourist accommodation and catering, 1.8 percent to information and communication services, 14.7 percent to social and other service spheres.

The non-oil sector increased by 10 percent compared to 2012 and its share in the country's GDP amounted to 56.6 percent. The volume of production of value added in the sphere of oil and gas production amounted to 43.4 percent of GDP.

The volume of production of value added in the sphere of construction in Azerbaijan increased by 23 percent, tourist accommodation and catering - 16 percent, trade and repair of vehicles - 9.9 percent, information and communication services - 10.7 percent, forestry and fishery - 4.9 percent, transport and warehousing - 6.3 percent, social and other services - 4.9 percent in 2013 compared to 2012.

Value added

in mln manat

Special weight,

%

Growth compared to reporting period of last year, %

GDP in total

57708,2

100,0

105,8

production of goods

36588,2

63,4

104,9

including

- industry

26701,5

46,3

101,2

- agriculture

3057,8

5,3

104,9

- construction

6828,9

11,8

123,0

Production of services

17429,7

30,2

107,2

including:

- transport

2781,6

4,8

106,3

- communications

1008,5

1,7

110,7

- tourism and public food facilities

1055,6

1,8

116,0

- trade and repair

4092,0

7,1

109,9

- social and other services

8492,0

14,7

104,9

Net taxes on products

3690,3

6,3

108,5

Defliator

99,2

Source: State Statistics Committee

The industrial production volume hit 33.7 billion manat in Azerbaijan in 2013 or 1.8 percent more than in 2012. This is by 1.7 percent more than in January-November 2012.

Azerbaijan's non-oil sector during this period showed a 4.8 percent increase, oil - a 1.1 percent increase.

According to the report, there was a high increase in the production of footwear and leather goods, printing products, cars and other vehicles in the non-oil sector of Azerbaijan in 2013.

During the reporting period, the volume of production in the mining industry was 24.9 billion manat with a weight of 74 percent of all industrial production, which is 0.7 percent more than in the previous year.

Oil production was 43.1 million tons, while natural gas production - 17.9 billion cubic meters in 2013. Oil production increased by 0.2 percent and gas production - by 3.6 percent compared to 2012.

The manufacturing production volume amounted to 6.77 billion manat with a weight of 20.1 percent in 2013 or by 5.8 percent more than in the previous year. Production, distribution and supply of electricity, gas and steam increased by 3.2 percent, while water supply, treatment and recycling of waste increased by 11.6 percent compared to 2012.

The Azerbaijani metallurgical industry produced products and rendered services worth 400.7 million manat in 2013. The production volume in the metallurgical industry increased 1.5 percent, whilst finished metal products during this period decreased by 46.8 percent per year.

Some 2249.2 kilograms of precious metals were produced in the country in 2013 or by 2.8 percent more than their production in 2012. In particular, the production amounted to 1619.2 kilograms of gold and 630 kilograms of silver.

As of January 1, 2014, Azerbaijan's agricultural output amounted to 5.244.6 billion manat at actual prices, increasing by 4.9 percent compared to 2012, according to the Azerbaijani State Statistical Committee's report. The growth of crop production amounted to 4.2 percent and livestock production's growth stood at 5.5 percent.

According to the State Statistics Committee, the Azerbaijani trading networks sold consumer goods to the population at 19.655.9 billion manat in 2013, which is 9.9 percent more than in 2012. Legal entities ensured 11.9 percent of trade turnover, individual entrepreneurs - 58 percent, fairs and markets - 42 percent.

According to the State Statistics Committee, in December 2013, the prices on consumer goods and tariffs on services increased by 1.9 percent compared to the previous month and by 2.4 percent in January-December 2013 in accordance with January-December 2012.

Thus, inflation in Azerbaijan, which is one of the indices of macroeconomic stability, hit only 2.4 percent in January-December 2013.

The positive dynamics is observed in improving the population's welfare indices.

According to the Azerbaijani State Statistics Committee, the nominal income of the population totaled 37.555.5 billion manat in 2013, which is 8 percent more compared to 2012.

Thus, during this period, the nominal income of the population per capita increased by 6.6 percent and hit 4.039.6 manat.

As of January 1, 2014, around 36,200 people were officially registered as unemployed in Azerbaijan, including 41.5 percent of women. Thus, the number of unemployed has been slightly decreased since early 2013 (some 36,791 people as of the beginning of the year).

The foreign trade turnover with 149 world countries amounted to $34.68 billion in 2013, or 3.35 percent more than in 2012. The volume of exports increased by 0.28 percent to $23.98 billion compared to the same period of 2012. The volume of import increased by 10.95 percent and hit $10.71 billion. Azerbaijan exported 2,111 products, and imported 6,159 different goods. As of 2013, the nominal index of export exceeded import. This formed the foreign trade surplus to the amount of $13.27 billion.

According to the Azerbaijani State Statistics Committee, around 17.8 billion manat was invested from all financial sources in the development of the economic and social areas of Azerbaijan in 2013, which is by 15.1 percent more than in 2012. It indicates sustainable investment activity in the country. In particular, around 3.279.8 billion manat were invested in the Azerbaijani economy in December 2013, which is by 20.4 percent more than investments in fixed assets in December 2012.

Manat exchange rate remained stable. In December 2013, average rate of manat to the U.S. dollar was 0.78 manat per dollar, to euro - 1.07 manat per euro, to Russian rouble - 2.39 manat per 100 rouble.

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