PremiumInvestments in Azerbaijan's economy (january-april 2013)

According to the State Statistics Committee of Azerbaijan, in January-April 2013, 4.252.7 billion manat was invested from all financial sources in the development of the economic and social areas of Azerbaijan, which is by 28.4 per cent more than during the corresponding period last year. It indicates sustainable investment activity in the country.

In particular, in April 2013, 1.350.5 billion manat were invested in the Azerbaijani economy, which is by 14.9 percent more than investments in fixed assets in April 2012. Prior to 2015, we will observe a steady increase in investment in capital construction because of the growth of building, rehabilitation and reconstruction work in preparation for the first European Olympic Games-2015 in Azerbaijan.

The main sources of investments in January-April 2013 are as follows:

• funds of enterprises and organizations - 1.911.8 billion manat (an increase of 19.5 percent compared to January-April 2012;
• budgetary funds - 1883.4 billion manat (an increase of 40.6 percent);
• off-budgetary funds - 120.9 million manat (an increase of 30.2 percent);
• bank loans - 228.3 million manat (an increase of 21.3 percent);
• funds of population - 94.7 million manat (a increase of 17.8 percent).

Apparently, increased investments in January-April 2013 are related to the increased investment activity of all financial sources. In general, an increase in investment in April 2013 was related to the investment activity at the expense of the budget funds, most of which are directed at infrastructure construction.

According to the State Statistics Committee, private enterprises and organizations invested 1.666.2 billion manat (39.2 percent of total investments) in Azerbaijan's economy, and public enterprises and organizations - 2.586.5 billion manat (60.8 percent).

Investments in construction work, according to the SSC, grew by 40.9 per cent. Investments of 2.289.1 billion manat were made in construction of production facilities and 1.963.6 billion manat - in service sector.

About 66.7 per cent of funds invested in capital stock, or 2838.1 manat, were directed at the development of the non-oil sector. Investments in the oil sector comprised 1.414.6 billion manat (33.3 per cent). Investments in non-oil sector compared to the reported period last year increased by 26.6 per cent, to the oil sector - 32.4 per cent.

The total investments in the industry totaled 2.008.1 billion manat with an increase of 42.6 percent. About 258 million manat were invested in the processing industry (increased by 75 percent). During the reporting period, the investments in the extractive sector hit 1.417 billion manat, which is 32.6 percent more than investments in January-April 2012. Totally, 47.2 percent of investments fell to the industrial sector.

Of the total capital investments, 72.2 percent accounted for domestic investment, which increased by 24.3 percent during a year. Most (78.6 percent) of domestic investments was made in the state-owned enterprises and entities, and only 21.4 percent in private enterprises.

Investment indices in January-April 2013:

(Source: State Statistics Committee and calculations by Trend")

In January-April 2013, the total amount of foreign investments in Azerbaijan's economy amounted to 1.180.2 billion manat.

During January-April, 87.5 per cent (1.032.5 billion manat) of investments in Azerbaijan's economy made by foreign countries and international organisations fell to investors from the UK, USA, Japan, Norway, Turkey and the Czech Republic.

As previously, the UK continues to maintain a leading position in the list of foreign investors in Azerbaijan. Its share in the total foreign investment was 44.1 per cent, while investments totalled 520.9 million manat.

Of the international financial institutions, the biggest amount of investments was allocated by WB in amount of 39.8 million manat in a special weight of 3.4 percent. WB projects cover different spheres of the country's economic life.