General economic situation

In January to October 2006 the GDP grew 34.3% and made up 14,761,8mln AZN at current prices. The growth pace turned out 10.9% more than 2005.

Major factor causing such considerable rise of economic growth pace was the sharp rise in industry. Growth pace of industrial production went up in this period and attained 38% and comprised 11,706,6mln manats. Last year the figure was 30%.

The growth was possible at the expense of commencement of the bulk oil production from the Azeri-Chirag-Gunashli fields. The highest growth pace was fixed in the history of industrial development in the country. The oil production grew 44.6% and comprised 75% of the total industrial output. Rise in industrial production was observed in oil production by 47% and it comprised 26,009mln tons, whereas gas production was 5,539bln cu m amid 20.2%-rise.

However, growth pace in the agrarian production continues drop. Thus, in January to October the output dropped 2% as compared to 2005 when it was 7.2%.).

The investments put in major capital rose inconsiderably. A total of 4750.1m AZN was invested in economy, which is 15% up as compared to 2005 when it was 10.4%. The major reason for rise in investments is growth in demand by the construction of industrial facilities in this sector, where 86.2% of all investments was spent.

Thus, growth pace of consumer demand rose. The turnover of retail good turnover rose 12.7%, while the community services grew 40.9%. The growth pace of commercial services and the retail goods turnover increased, as it seems on the results of the first 10 months of 2005, when the rise comprised 12.5% and 21.6% respectively

Value Added Price

In bn manats

Special weight, in %

Real rise, in %

GDP in total




production of goods





- industry




- agriculture




- construction




Production of services





- transport




- communications




- trade and repair




- hotels and restaurants




- social and different services




Net taxes on products






Sources: State Statistics Committee, calculations by Trend

Major part of demand was satisfied at the expense of export, which grew by 40.74% and comprised $5,210,322mln. The volume of import made up $4,210,379mln, or 19.69% up as compared to last year. The foreign trade ended in balance with $999941.9mln in black.

Major reason for cut in import operations was drop in the amount of import of equipment, technical rigs and spare parts for them, ware of ferrous metal, natural gas, grains, transport conveyances for dry cargo, food, medicine.

Growth pace of consumer prices fell and made up 1.3% in October as compared September. However, prices of foodstuff rose 1.6%, non-food products 1.6%, and tariffs and services 0.2%.

In September prices rose 1.3%. Prices of meat products rose 0.3%, diary, eggs and cheese 2%, bread 0.7%, fish 2.9%, vegetable 8.7%, sugar and confectionary 0.2%, coffee, tea, kakao 0.9%.

In his period prices of oil and fat fell 0.2%, fruits 0.4%, mineral water and cool drinks and juice 1.2%, alcohol drinks 0.8%.

The growth pace of inflation was 7.7% as compared to last year. Prices of food rose 11%, non-food products 5%, while tariffs in the service sector increased 2.4%. Prices of consumers goods and services increased 11.2% as compared to last year and 7.6% - as compared to last December.

As a result of January to October net incomes of the population rose 21.9%, and comprised 8339.2mln manats. The net incomes rose 1.2% as compared to last year.

Major tendency in the fiscal market in the first 10 months of 2006 was the consolidation of manat rates in the respect to US dollar. The IMF forecasts the maintenance of consolidation of the national currency in respect to US dollar reflects real state and is linked with rise in the country's oil revenues.

The National Bank of Azerbaijan (NBA) reiterated the rise in net efficiency rate (RER) in respect of currencies for trade partners in October 2006 as compared to December 2006.

The NBA informed Trend that the rate rose 0.6% in the total goods turnover, 1.5% in export and no change in import. Compared to 2005, the RER rose 1.7% in the total goods turnover, 2.3% in import and 1.2% in export.

According to the NBA, in October the RER in the non-oil sector rose 2.5 % in the total trade compared to the end of 2005, 2.4% in import, and 2.3% in export. Rate of manat rose 3.7%, 3.7% and 2.9% respectively over the similar period of 2005.

In October 2006 the RER of manat in the foreign trade dropped 8.3% compared to December 2000 (without consideration of oil sector), 0.4% 0 in import and 14.4% export. In the non oil sector the RER manat rose 5.5%, 4.3% and 12.8% respectively.

According to the National Bank of Azerbaijan (NBA), with consideration of the oil sector, the total efficiency ratio (RER) of manat in respect to currencies of foreign trade partners of the Country, rose 4.2% in the general trading, 4.1% in import and 4.4% in export. Over 10 months the change of net currency rate affected the RER of goods turnover by 14%, with change of prices, 86% (with consideration of the oil sector).

Research showed that the impact of the U.S. share on increase of RER in foreign trade (with the consideration of the oil sector) was 0.4%, Turkey was 1%, Georgia was 0.1%, Israel was 0.2%, Ukraine was 0.3%, Japan was 0.2%, Iran was 0.04%, Eurozone was 2.06%, UK was 0.18%, Kazakhstan was 0.1%, with a drop in Russia's share of 0.3%.

In October the RER rose 8.1% in overall trading compared to 2005, 7.5% for import and 8.7% for export. In October the RER rose 5.2%, 5.4% and 2.7% in the oil sector respectively compared to December 2005 and 9.1%, 9.4% and 5% compared to 2005.

In October the RER drop in the non-oil sector was 5.9% in the total goods turnover compared to December 2000 (excluding the oil sector), 4.5% in import and 22.7% in export. With the consideration of oil sector the RER also fell 10.9%, 11.8% and 9.6% respectively.

Over January to October 2006, Japan exceeded the growth rate of the manat in respect of currencies of the United States, Georgia, Kazakhstan and Japan. At the same time the manat fell in respect of the Euro, British Pounds and Israeli Shekeli, but rose in reality. During this period the manat has become stronger in respect of the ruble in total by 2.1%, as the growth rate of inflation in both countries were the same during this period. Prevalence of the net rate over the total in respect to currencies of Iran, Turkey and Ukraine is explained with the rise of inflation in these countries over the consumer prices in Azerbaijan.

The NBA came to the conclusion that in the long-term (2000-2006) the RER of manat dropped, which asserts the availability of terms for foreign trade with major trade partners in Azerbaijan. Over 2001-2006 the level of inflation in Azerbaijan was 35.7%, whereas prices of trade partners were 39.2% in average.

Subscribe to Trend in Google News! Subscribe
Kazakhstan-based Nostrum unveils oil production indicators for 2021
Kazakhstan-based Nostrum unveils oil production indicators for 2021
Romanian energy minister to visit Azerbaijan
Romanian energy minister to visit Azerbaijan
Georgia’s imports of oil products from Kazakhstan plummet
Georgia’s imports of oil products from Kazakhstan plummet
Loading Bars
U.S. FAA says Verizon, AT&T can turn on more towers for 5G deployment
Belgium's total COVID-19 infections exceed 3 mln
Biden says he'll send troops to eastern Europe in ‘near term'
U.S. airlines cancel almost 5,000 flights ahead of Nor'easter
Argentina announces debt agreement with IMF
Canada's COVID-19 cases surpass 3 mln
Fake news, disinformation on COVID, is human rights violation: Pope Francis
Tunisia thwarts alleged terrorist attack targeting tourist areas
Turkey welcomes Kyrgyzstan-Tajikistan ceasefire
UN chief calls for observing Olympic Truce
UN thanks Azerbaijan for contributions to budget of organization
Residents of Bina settlement express gratitude to President Ilham Aliyev and First Lady Mehriban Aliyeva for establishment of Training and Service Complex (PHOTO/VIDEO)
Russia expands retaliatory list of EU representatives banned from entering country — MFA
Ten injured after bridge collapses in U.S. city Pittsburgh
Iran deal talks are adjourned until next week — EU
Erdogan to visit Ukraine on Feb 3 as part of mediation efforts
Germany's exports to UK continue to decline in 2021: Destatis
Azerbaijan's Agency for State Support to NGOs, Turkey's Ministry of Interior sign memorandum of co-op (PHOTO)
Embassy of India organised Blood Donation Drive (PHOTO)
Tractor hits mine in Azerbaijan's Fuzuli district
Uzbek Central Bank notes growth in volume of loans issued to individuals
Uzbekistan shares data on loan portfolio of its banks for 2021
Russian veterans urge to check Union of Armenians in Russia regarding film about Garegin Nzhdeh
Azerbaijan's Nakhchivan reveals revenue data from communication and information services
Remains of Armenian soldier found in Azerbaijan's Fuzuli district
GDP of Azerbaijan's Nakhchivan growing
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 3,564 more COVID-19 cases, 1,004 recoveries
Russia allocates credit line for construction of Iran`s Sirik power plant - minister
National Bank of Georgia to adopt regulations for cryptocurrency trading platforms
Azerbaijan’s Nakhchivan discloses loans issued to population
Azerbaijan Entrepreneurship Development Fund to help businesses create corporate governance mechanisms
German RBC consulting company talks achievements in work on Azerbaijani market
Kazakh president calls on Nur Otan party members to focus on some priorities
Iran Oil Industry Pension Fund eyes to invest in oil and energy sectors
Uzbek UzAuto Motors to generate higher revenue in 2022
Azerbaijan’s Buta Airways becomes most active passenger carrier in Georgia
Kazakhstan-based Nostrum unveils oil production indicators for 2021
Turkmenistan assisting in delivery of Turkish humanitarian aid to Afghanistan
Azerbaijan to increase number of bus routes to Karabakh (Exclusive)
Azerbaijan discloses number of passengers of regular bus trips to liberated Shusha, Aghdam
President Ilham Aliyev congratulates president of Kazakhstan on election as chairman of Nur Otan party
Uzbekistan proposes India to develop co-op in healthcare, education and IT
Azerbaijani President Ilham Aliyev signs order on 30th anniversary of Khojaly genocide
Israel signs deal with Novavax for COVID vaccine
Azerbaijan's ANAMA builds new mobile field camp in Aghdam district (PHOTO)
TBC Capital shares data on mortgage loans issuance in Georgia
Turkmen Commodity Exchange discloses data on imports from East Asian countries
SOFAZ places €1 billion deposit with Central Bank of Turkey
Iran seeks to prevent import of luxury goods
India & 5 Central Asian Countries To Form Joint Working Group On Afghanistan
Azerbaijan's foreign trade turnover notably up in 2021
Azerbaijani deputy PM to attend opening ceremony of Olympic Winter Games in Beijing
Uzbekistan sees growth in agricultural production
India for ‘greater urgency’ in trade negotiations with EU, says EAM Jaishankar
Georgia increases textile exports to Turkey
Romanian energy minister to visit Azerbaijan
Azerbaijan records decline in foreign currency sales - chairman of CBA
Georgia’s imports of oil products from Kazakhstan plummet
Turkmenistan to increase electricity supply to Afghanistan
Central Bank of Azerbaijan names allocations made to support national currency rate in 2015
Azerbaijan to build astronomical station in Karabakh region
Use of cryptocurrency not endangering stability of Azerbaijani national currency - CBA
Central Bank of Azerbaijan plans to sign agreement with int’l consulting company
UNIDO to offer expertise for Turkmen energy sector
Central Bank of Azerbaijan names priorities for development of insurance sector
Our first president made huge contribution to strengthening of state - President Tokayev
Nur Otan party should be led by person who was nominated and supported by it in presidential election - Nazarbayev
CBA expects inflation to return to target range Azerbaijan in 2023
Devotion to interests of country has particular importance in politics - Kazakh president
Iran working on connecting of Gilan ports to national railway network
Share of electricity in Azerbaijan’s total exports down
Siraf Pars Port in Iran becomes country's major liquid gas exporter
Global food prices rise to highest level over past decade - FAO (Exclusive)
Decree regulating process of charity on part of big business to be issues in Kazakhstan
French 2021 economic growth strongest in 52 years at 7%
Kazakh-Russian copper deposit dev't project approved by Russia's Main Department of State Expertise
Azerbaijan reveals petroleum coke, oil bitumen exports
Buta Airways to resume flights to Mineralnye Vody in February
Turkmenistan sees decline in trade turnover with Azerbaijan
We'll return to issue of expediency of my further chairmanship in Nur Otan after some time - Tokayev
Representative body of Kazakhstan's Nur Otan party updated by 55%
Azerbaijan unveils volume of transactions via Apple Pay
Public councils created under Nur Otan party should become effective platform - Tokayev
Azerbaijani Central Bank not planning to create new legislative base to regulate digital banks
Central Bank discloses Azerbaijan's possible current account balance in 2022
Potential of Nur Otan party wasn't fully utilized at critical moment - Tokayev
Currency rate of Azerbaijani manat to be stable in 2022 - CBA
Military reforms, increasing of combat capability of troops to be priority in 2022 – Azerbaijan MoD
Dariga Nazarbayeva resigned from Kazakhstan Nur Otan party
Azerbaijan reveals Top 10 oil importers
Azerbaijani CBA forecasts increase in demand for foreign currency
Rothschild & Co eyes creation of special financial zones in Georgia
Azerbaijan increases share of natural gas in exports
Annual inflation to be above target range in Azerbaijan - CBA
Nur Otan Party needs to renew itself - Tokayev
Turkmen enterprise eyes to expand tomato production
Non-OPEC won’t return to pre-COVID levels of oil output
Azerbaijan defense minister expresses condolences to Pakistan
Additional barrels from OPEC+ back to market in 2022 to be less than headline figure
All news