BAKU, Azerbaijan, December 26. The nominal amount of investments in Azerbaijan's economy from 2023 to 2027 may increase by roughly 5 percent, Trend reports via an informed source in the government, which prepared forecasts for the country's socio-economic development.
According to the source, capital investments are estimated to reach 19.9 billion manat ($11.7 billion) by 2023 (a 7.7 percent increase from 2022) and 22.85 billion manat ($13.4 billion) by 2027.
"The nominal total volume of capital investments in fixed assets in Azerbaijan in 2024 is forecasted at 20.4 billion manat ($12 billion), with a real growth rate of one percent, but the growth rates of this indicator will increase year by year," the source noted.
Besides, the source emphasized that over the next four years, investment growth is planned through domestic sources in the country (company funds, bank loans, etc.).
Moreover, next year, out of the total investment volume, 16.28 billion manat ($9.58 billion) will be invested from internal financing sources and 4.12 billion manat ($2.4 billion) from foreign ones.
In 2025, the figures are expected to be 16.69 billion manat ($9.8 billion) and 4.46 billion manat ($2.6 billion), respectively; in 2026, 17.3 billion manat ($10.18 billion) and 4.66 billion manat ($2.7 billion), while in 2027, almost 17.94 billion manat, or $10.5 billion (internal), and 4.9 billion manat, or $2.88 billion (foreign).
Forecasts for non-oil sector investment are as follows: 2024: 14.1 billion manat ($8.29 billion) from all sources (internal and external); 2025: 14.84 billion manat ($8.7 billion); 2026: 15.9 billion manat ($9.3 billion); and 2027: 16.86 billion manat ($9.9 billion).
"The largest share of investments in the non-oil sector is intended for the development of agriculture, transport and service sectors, technology, and construction. Of course, this includes investment in the development of Karabakh and Eastern Zangazur," the source noted.
Investment in the oil and gas sector of Azerbaijan in 2024 and 2025 is planned at the level of 6.3 billion manat ($3.7 billion) per year, and in 2026 and 2027, around six billion manat ($3.5 billion) per year, according to the source.
"It is not excluded that by the first half of 2024, these forecasted indicators will be adjusted, as the volume of work will be clarified due to the hosting of the COP29 summit in Azerbaijan, on the liberated territories, and other factors," the source added.
The total volume of investments in the economy of Azerbaijan (from all sources) in 2022 amounted to a record 29 billion manat ($17 billion), which is 15.1 percent more than in 2021.
Meanwhile, foreign investment in the Azerbaijani economy rose by 16.7 percent to 14.87 billion manat ($8.7 billion), and domestic investments rose by 13.2 percent to 14.25 billion manat ($8.38 billion).
