General economic situation in Azerbaijan (January 2014)

Macroeconomic and microeconomic indices of Azerbaijan in January 2014 reflect the continuing development of the national economy.

The total volume of Azerbaijan's GDP as of January 2014 amounted to 4.4 billion manat, which exceeds the same period of 2014 by 0.8 percent. GDP per capita amounted to 465.6 manat ($593.6) in January.

During the reporting period, some 60.4 percent of Azerbaijan's GDP was formed in production sphere, about 50.1 percent in industry, 7.8 percent in construction, 2.5 percent in agriculture, forestry and fishing. About 39.6 percent of the gross product was created in the service sector.

Net taxes on production and imports amounted to 6.7 percent of Azerbaijan's GDP.

Some 7.84 percent of GDP in the service sector fell to the trade and repair of vehicles, 5.65 percent to transport and warehousing, 2.1 percent to tourist accommodation and catering, 1.8 percent to information and communication services, 15.6 percent to social and other service spheres.

The non-oil sector increased by 7.7 percent compared to the same period of 2013 and its share in the country's GDP amounted to 53.8 percent. The volume of production of value added in the sphere of oil and gas production amounted to six percent of GDP.

The volume of production of value added in the sphere of construction in Azerbaijan increased by 18.9 percent in January 2014 compared to the same period of 2013, tourist accommodation and catering - 15.7 percent, trade and repair of vehicles - 9.3 percent, information and communication services - 3.6 percent, agriculture, forestry and fishery - 3.3 percent, transport and warehousing - 5.5 percent, social and other services - 3.6 percent.

The total volume of industrial production (the volume of products and rendered industrial services) hit 2.8 billion manat in Azerbaijan in January 2014 or 0.2 percent less than in the same period of 2013. Azerbaijan's non-oil sector showed a 5.6 percent increase, oil - a 5.2 percent decrease during the reporting period.

During the reporting period, the volume of production in the mining industry was two billion manat with a specific weight of 72.7 percent of all industrial production, which is 4.6 percent less than in January 2013.

Oil production was 3.59 million tons, while natural gas production - 1.65 billion cubic meters in January 2014. Oil production decreased by 5.1 percent, while gas production increased by 6.7 percent compared to January 2013.

The manufacturing production volume amounted to 542.5 billion manat with specific weight of 19.7 percent in January 2014 or by 1.7 percent less than in January 2013. Production, distribution and supply of electricity, gas and steam increased by one percent, while water supply, treatment and recycling of waste increased by 7.2 percent compared to the same period of 2013.

Azerbaijan, which has started commercial production of gold since July 2009, and publication of accompanying silver production volume in 2010, lowered gold production by 3.1 percent, and silver - by 44 percent in January 2014. According to the State Statistics Committee, around 126.5 kilograms of precious metals were produced in January which was by 15.7 percent lower than in the same period in 2013. Some 100.5 kilograms of gold and 26 kilograms of silver were produced in January.

As of Feb.1, 2014, Azerbaijan's agricultural output amounted to 196.2 million manat increasing by 3.3 percent compared to January 2013, according to the Azerbaijani State Statistical Committee's report. The growth of crop production amounted to 5.1 percent and livestock production's growth stood at 3.3 percent.

The Azerbaijani trading networks sold consumer goods to the population at 1.665.9 billion manat in January 2014, which is 9.3 percent more than in January 2013. Legal entities ensured 12.5 percent of trade turnover, individual entrepreneurs - 51.4 percent, fairs and markets - 35.9 percent.

In January 2014, the prices on consumer goods and tariffs on services decreased by 0.2 percent compared to the previous month and increased by 2.2 percent in January 2014 in accordance with January 2013. Thus, inflation in Azerbaijan, which is one of the indices of macroeconomic stability, hit only 2.2 percent in January 2014.

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 2.618.2 billion manat in January 2014, which is 3.8 percent more compared to January 2013. Thus, during this period, the nominal income of the population per capita increased by 2.5 percent and hit 279.7 manat.

According to the Azerbaijani State Statistics Committee, as of Feb.1, 2014, around 36,488 people were officially registered as unemployed in Azerbaijan compared to 36,209 people as of early 2014. Thus, the number of unemployed has increased by 279 people in January.

The foreign trade turnover with 101 world countries amounted to 2.41 billion in January 2014, or 5.66 percent less than in January 2013. The volume of exports decreased by 2.7 percent and amounted to $1.87 billion. The volume of import decreased by 14.73 percent and amounted to $535.13 million. Azerbaijan exported 565 products, and imported 3,027 different goods. As of January 2014, the nominal index of export exceeded import. This formed the foreign trade surplus to the amount of $1.34 billion.

According to the Azerbaijani State Statistics Committee, around 660.9 million manat was invested from all financial sources in the development of the economic and social spheres of Azerbaijan in January 2014, which is by 6.3 percent more than in January 2013. It indicates sustainable investment activity in the country.

The exchange rate of manat remained stable. In January 2014, the 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 - 2.34 manat per 100 rouble.