Investments in Azerbaijan's economy (January-February 2011)

Nearly 1120.3mln manat was invested in the economy of Azerbaijan in January-February 2011, a decrease of 1.7% from the figures of the same period of the last year.

Especially, in February 2011, 688.3 million manat was invested in Azerbaijan's economy, which is 14.8 percent more than investments in February 2010.

The main sources of investments in January-February 2011 are: funds of enterprises and organizations - 665.8 million manat (an increase of 8.1 percent compared with January-February 2010); budgetary funds - 298.5 million manat (decreasing by 26.7 percent), off-budgetary funds - 37.8 million manat (with a decline of 6.6 percent), bank loans - 91.3 million manat (increasing by 76.9 percent), population's funds - 25.9 million manat (increasing by 8.7 percent).

As seen, the decrease in investment in February 2011 is due to a decrease in budgetary and off-budgetary funds, which is associated with the passive nature of public investment in early years.

According to the data provided by the State Statistics Committee, private enterprises and organizations invested 545.1 million manat (48.7 percent of total investments) in Azerbaijan's economy and public enterprises and organizations - 575.2 million manat (51.3 percent). Major share of governmental investments are directed at implementing transport and infrastructure projects.

In January-February 2011, investments in the oil sector accounted for 34.5 percent of all capital investments in the economy. Thus, in January-February 2011, the investments in the oil sector totaled 386.8 million manat, while non-oil sector - 733.5 million (65.5 percent).

The gross investments in the industry totaled 567.5mln manat with an increase of 26.0%. About 164.5mln manat was invested in the processing industry (+10.1 times). During the reported period, the gross investments in the extractive sector composed 382.1mln manat, which is 2.0% more than investments in 2010. Generally, 50.7% of investments fell on the industrial sector.

Investments for repair and construction work made up 623.1 million manat (55.6-percent of total investments in the construction sector). Investment for the construction of production facilities totaled 600.6 million manat, while non-production facilities totaled 519.7 million manat.

Of the total capital investments, 71.7 percent accounted for domestic investment. Most (61.6 percent) of domestic investments was made in the state-owned enterprises and entities, and only 38.4 percent - private enterprises.

Investment indices in January-February 2011 :

(Source: State Statistics Committee and calculations by Trend)

The amount of foreign investments in Azerbaijan's economy totaled 317.4 million manat in January-February 2011, which is 3.5 percent lower compared to the same period of last year. Great Britain continues to keep leading positions on amount of investments to Azerbaijan. Weight of the country in amount of foreign investments hit 40.1 percent in January-February 2011, State Statistics Committee said. British investments hit 127.4 million manat.

Roughly 86.2 percent (173.7 million manat) of investments of foreign countries and the international organizations to the Azerbaijani economy fall on share of investors from Great Britain, the USA, Japan, France, Norway, Czech Republic, Turkey and Korea.

Of the international financial institutions, the biggest amount of investments was allocated by WB in amount of 30.9 million manat with weight of 9.8 percent. WB projects cover different spheres of the country's economic life.