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Investments in Real Sector

Analysis Materials 8 August 2007 12:05 (UTC +04:00)

In January to June 2007 a total of 2727.3mln manats ($2641.9mln on average exchange rate of 0.86 AZN per 1 USD), has been invested in the Azerbaijani economy, which is 10.6% up as compared to the amount of investments put in 2006.

In June 2007, 455.2mln AZN ($523.2mln) of capital investments has been invested in the Azerbaijani economy with a growth pace of 14.2% as compared to last year, while they increased 21.4% as compared to May 2007.

According to the State Statistics Committee, in January to June 2007 a total of 1410mln manats ($1620.7mln) has been invested at the expense of internal sources, or 50.8% more than 2006. Special weight of internal investments made up 51.7%. Foreign investments constituted 48.3%. Some 96.7% (AZN 1273.5mln) out of the investments by the foreign countries and international organizations into the economy of Azerbaijan falls to Great Britain (with special weight of 44.5% in the gross investments), the USA (21.2%), Japan (12.3%), Norway (7.7%), Turkey (6.1%), Saudi Arabia (2.5%), German (1.4%) and Iran (2%). Of the international financial institutions, the largest amount of investment in the first half year was put by the World Bank in amount of AZN 10.648 mln, with special weight of 0.8%.

Investment indices in January to June 2007

Source: State Statistics Committee and calculation by Trend

  Amount in mln manats (AZN) Special weight, %
Investments in total 2272,1 100,0
Foreign investments 1317,3 48,3
Internal investments 1410 51,7

Major sources of investing were funds of enterprises (AZN 1955mln with a decrease of 0.3%), banking credits (AZN 88.4mln with a drop of 46%), community funds (AZN 96.6mln with a drop of 18%), budget funds (AZN 454.2mln with a rise of 2.2%), non-budgetary funds(AZN 120.9mln with a rise of 3 times) and others (12.2mln manats with a drop of 16.9%).

Almost ? part of the expenses for the construction sector was allocated out of the public budget. A total of AZN 1917.6mln has been allocated out of the 2007 public budget and AZN 423.9mln has been spent (22.1%).

Investments directed at repair and construction work rose 15.2% and made 1430mln manats.

AZN 2276mln (83.5%) has been directed for the construction of production facilities, while AZN 451.3mln (16.5%) - non-production facilities.

In the first half year, 1630.4mls manats (59.8%) was directed towards the development of the oil sector and non-oil sector - 1096.9mln manats (40.2%). The investments into non-oil sector have increased by 20.6% as compared to the same period of 2006.

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