Investments in Azerbaijan's economy (January 2015)

According to the Azerbaijani State Statistics Committee, around 682.7 million AZN was invested from all financial sources in the development of the economic and social areas of Azerbaijan in January 2015, which is by 3.2 percent more than in January 2014.

The main sources of investments in January 2015 are as follows:

• funds of enterprises and organizations - 486.7 million AZN (an increase of 94.6 percent compared to January 2014;
• budgetary funds - 130.6 million AZN (a decrease of 57.1 percent);
• off-budgetary funds - 19.8 million AZN (an increase of 54.9 percent);
• bank loans - 43.3 million AZN (a decrease of 38.4 percent);
• funds of population - 1.5 million AZN (a decrease of 13.9 percent)

Apparently, the investments made in the country's economy in January 2015 increased due to an increase in investment activity of enterprises, organizations and the off-budget funds.

According to the State Statistics Committee's report, the private businesses and organizations invested 64.9 percent of total investments in the fixed capital, but the state businesses and organizations - 35.1 percent.

The investments in construction and installation work for the period amounted to 73.6 percent of the total investments. The growth of this index was 11.8 percent per annum.

The investments worth 585.6 million AZN were made in the construction of production facilities, while 97.1 million AZN in the non-production facilities.

According to the official statistics, the total investments in the Azerbaijani industry amounted to 4.624 billion AZN or by 88.2 percent more compared to January 2014. Around 3.7 million AZN of these funds was invested in the processing industry (a 79.8 percent decrease). The investments in extracting sector totaled 437.3 million AZN or by 2.2 times more than in January 2014. Around 67.7 percent of investments accounted for the industrial sector.

The investments in production, distribution and supply of electricity, gas and heat in January 2015 amounted to 6.3 million AZN or 4.5 percent more than in 2014.

About 35.9 percent of funds (245.3 million AZN) were directed at the development of the non-oil sector. Investments in the oil sector comprised 437.4 million AZN (64.1 percent).

Investments in non-oil sector decreased by 42.4 percent, while they increased twofold in the oil sector.

Around 38 percent of the total capital investments accounted for domestic investments.

Most of domestic investments (79.1 percent) fell to the state-owned enterprises and organizations.

Investment indices in January 2015:

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

The total amount of foreign investments in Azerbaijan's economy amounted to 423.3 million AZN in January 2015 or by 95.6 percent more compared to January 2014.

The foreign investments greatly exceeded the domestic investments for the first time for many years.

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, the credit rating of Azerbaijan increased by the world leading rating agencies, the policy of integration into the world economy contribute to the growth of foreign investments.

Around 87 percent (368.5 million AZN) of investments in Azerbaijan's economy made by foreign countries and international organisations fell to investors from the UK, U.S, Japan, Norway, Turkey and the Czech Republic in January 2015.

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 34.5 percent, while investments totalled 146.2 million AZN.

The biggest amount of investments among the international financial institutions was allocated by WB to the amount of 27.83 million AZN with a special weight of 6.6 percent. WB projects cover different spheres of the country's economic life.