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Weekly economic review

Analysis Materials 31 January 2007 12:02 (UTC +04:00)

The State Statistics Committee hosted a traditional news conference on Thursday on the socio-0ecnomic results of 2006. Arif Valiyev, the Chairman of the State Statistics Committee, stated high rise in all economic indices and first of all, growth of GDP which last amounted to 17,735,8mln manats. Thus, 58.3% of the GDP was produced in industry, 7.1% - in agriculture, hunting and forestry, 5.6% - wholesale and retail trade, repair of automobiles, home appliances and personal things, 1.8% - in the communications sector, 7.9% - in social sector, 6.5% - net taxes and import. GDP in non-oil sector rose 12.1% as compared to 2005 and made up 7,034,1mln manats.

The improvement of the economic indices indeed affected on the social state of population. The State Statistics Committee stated that the level of poverty in the country in 2006 fell down to 20,8%., informed Trend that the category of population, whose monthly cost of living is 58 AZN per person, is below the level of poverty.

According to him, the Milli Majlis approved the amount of the cost of living for 2007 at the rate of 64 AZN.

According to the results of the implementation of the first State Poverty Reduction Program, particularly as the results of 2005, the level of poverty in the country reduced down to 29%, while in 2004, 49% of the Azerbaijan population was considered in the poor category. The State Poverty Reduction and Stable Development Program (2006-2015) are expected to be approved .in the near time.
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Chairman of the State Statistics Committee practically stressed the transfer in the amount of community incomes. In accordance with the official data, Azerbaijanis currently resigning in Russia number 470,000 people, Trend reports. The data were obtained on the basis of general census held in Russia in 2002.

However, the unofficial data urge their number comprises 2.5-3mln people. In compliance with the researches held by the International Labor Organization, every family receives $137 a month from these people.

While calculating the country's common incomes, the revenues are taken in the sum of $150, with the consideration that some 70,000 of 470,000 people do not send money. The Gross National Incomes include revenues from 400,000 people.

With the consideration of these citizens, as of 1 January 2007 the population of Azerbaijan constituted 8,533mln people, or 1.13% (96,000 people) more than 2005

The situation with the calculation of the shadow economy in Azerbaijan is not so good. The State Statistics Committee said that unofficial economy in Azerbaijan does not exceed 18- 20%, Trend reports. Arif Veliyev, the Chairman of the Committee, said at a news conference dedicated to results of 2006 that the official registration of shadow economy is not carried out in Azerbaijan, but cut in the amount is observed. At the same time he does not agree upon the statements of the international organizations, who suggest that the shadow economy in Azerbaijan ranges between 40%-50%.

Usually, the biggest amount of unofficial economy is observed in case of illegal production of arms and drugs. The first is excluded, while the latter is observed in small volumes, he said.

The Committee Chairman said that the registration of unofficial economy is difficult due to the absence of official data on tutorship and bread production. The State Committee appealed the International Monetary Fund (IMF) for technical assistance in the application of new national accounts for the registration of unofficial economy. Special observation and expert calculation are required for calculation of the unofficial economy and assistance from the international experts was requested in this respect.

It is high time for the State Statistics Committee to join IMF's social standards in order one and for all to put an end to disagreements in the calculations of any statistics by the international organizations.

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