Investments in Azerbaijan's economy (January-March 2014)

According to the Azerbaijani State Statistics Committee, around 3.125.9 billion manat was invested from all financial sources in the development of the economic and social areas of Azerbaijan in January-March 2014, which is by 7 percent more than in the same period of last year. It indicates sustainable investment activity in the country.

In particular, around 1.301.3 billion manat were invested in the Azerbaijani economy in March 2014, which is by 6.5 percent more than investments in fixed assets in March 2013. Until 2015, we will observe a steady increase in investment in capital construction because of the growth of building, rehabilitation and reconstruction work in preparation for the first European Olympic Games-2015 in Azerbaijan.

The main sources of investments in January-March 2014 are as follows:

• funds of enterprises and organizations - 1.733.6 billion manat (an increase of 37.3 percent compared to January-March 2013;
• budgetary funds - 1.138.2 billion manat (a decrease of 15.6 percent);
• off-budgetary funds - 32.4 million manat (a decrease of 43.9 percent);
• bank loans - 141.7 million manat (a decrease of 20.9 percent);
• funds of population - 75.2 million manat (an increase of 11.6 percent)

Apparently, the investments made in the country's economy in January-March 2014 increased due to an increase in investment activity of enterprises, organizations and the population.

According to the committee, investments in construction work increased by 25.4 percent. Investments worth 2.189.5 billion manat were made in construction of production facilities and 936.4 million manat - in non-production facilities.

Private enterprises and organizations invested 50.5 percent of all investments in fixed capital, and the state enterprises - 49.5 percent.

About 56.2 percent of funds invested in capital stock, or 1.756.3 billion manat, were directed at the development of the non-oil sector. Investments in the oil sector comprised 1.369.6 billion manat (43.8 percent). Investments in non-oil sector decreased by 4.3 percent, while they increased by 26.1 percent in the oil sector.

The total investments in the industry totaled 1.538 billion manat with an increase of 5.9 percent. About 34.9 million manat were invested in the processing industry (a decrease of 68.5 percent). During the reporting period, the investments in the extractive sector hit 1.360.4 billion manat, which is 25.4 percent more than investments in January-March 2013. Totally, 49.2 percent of investments fell to the industrial sector.

Around 67.5 percent of the total capital investments accounted for domestic investments increasing by 6 percent per year. This is a positive index, primarily, because it shows the growing financial potential of the country.

Most (68.7 percent) of domestic investments fell to the state-owned enterprises and organizations, and only 31.3 percent - private enterprises.

Investment indices in January-March 2014:

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

The total amount of foreign investments in Azerbaijan's economy amounted to 1.016.2 billion manat in January-March 2014 or by 9.9 percent more compared to the same period of 2013.

The growth of foreign investments in the country shows that Azerbaijan is a very reliable partner and a very attractive country for foreign investors. The economic reforms, economic liberalization, increasing the credit rating of Azerbaijan by the world leading rating agencies, the policy of integration into the world economy contribute to the growth of foreign investments.

Around 80.7 percent (819.6 million manat) of investments in Azerbaijan's economy made by foreign countries and international organisations fell to investors from the UK, USA, Japan, Norway, Turkey and the Czech Republic in January- March 2014.

As previously, the UK continues to maintain a leading position in the list of foreign investors in Azerbaijan. Its share in the total foreign investment was 21.2 percent, while investments totalled 215.1 million manat.

The biggest amount of investments among the international financial institutions was allocated by WB to the amount of 22 million manat with a special weight of 2.2 percent. WB projects cover different spheres of the country's economic life.