Investments in Azerbaijan's economy (january-july 2015)

According to the Azerbaijani State Statistics Committee, around 9.368 billion manat was invested from all financial sources in the development of the economic and social areas of Azerbaijan in January-July 2015 or by 3.5 percent more than in the same period of 2014.

Around 1.443 billion manat was invested in Azerbaijani economy in July 2015 or by 0.5 percent less investments in fixed capital than in July 2014.

The main sources of investments in January-July 2015 are as follows:

• funds of enterprises and organizations - 6.774 billion manat (an increase of 31 percent compared to January-July 2014;
• budgetary funds - 1.663 billion manat (a decrease of 49 percent);
• off-budgetary funds - 153.8 million manat (a decrease of 6.4 percent);
• bank loans - 443.3 million manat (an increase of 51 percent);
• funds of population - 273.2 million manat (an increase of 15.5 percent)

Apparently, the investments made in the country's economy in January-July 2015 increased due to an increase in investment activity of all sources except for the budget and off-budget funds.

The share of budget funds in investing the economy is 17.8 percent. It ranks second after the funds of enterprises and organizations.

According to the State Statistics Committee's report, the private businesses and organizations invested 71.6 percent of total investments in the fixed capital, but the state businesses and organizations - 28.4 percent.

The investments in construction and installation work for the period amounted to 74.7 percent of the total investments. The growth of this index was 11.6 percent per annum.

The investments worth 6.260 billion manat were made in the construction of production facilities, while 3.109 billion manat in the non-production facilities.

Some 5.24 billion manat (52.1 percent) of the funds invested in the fixed capital were directed at the development of the non-oil sector. Some 4.12 billion manat (47.9 percent) were invested in the country's oil sector. This is by 18.84 percent more than in the same period of 2014.

The total investments in the Azerbaijani industrial sector amounted to 4.84 billion manat or by 18.8 percent more compared to January-July 2014.

The investments in extractive industry totaled 4.2 billion manat or by 21.5 percent more than in January-July 2014.

Some 51.7 percent of investments accounted for the industrial sector, 12 percent - construction, 11.6 percent - transport and warehousing, 3.5 percent - sports, entertainment and the arts.

The hospitality and catering (tourism) has become the most attractive investment sector of the economy of Azerbaijan. According to the Azerbaijani State Statistics Committee, the investments in this sector increased by 7.2 times in January-July 2015 from year to year, by showing the best dynamics among the sectors.

Some 449.2 million manat was nominally invested in the sector or 4.8 percent of all investments in Azerbaijan during the period.

Around 58.6 percent of the total capital investments accounted for domestic investments.

Investment indices in January-July 2015:

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

The total amount of foreign investments in Azerbaijan's economy amounted to 3.874 billion manat in January-July 2015 or by 46.4 percent more compared to January-July 2014.

The biggest amount of foreign investments has accounted for March since early 2015 (653.4 million manat, while the minimum amount was invested in February (387.7 million manat).

The growth of foreign investments in the country shows that Azerbaijan is a very reliable partner and a very attractive country for foreign investors. The economic reforms, economic liberalization, the credit rating of Azerbaijan, increased by the world leading rating agencies, the policy of integration into the world economy contribute to the growth of foreign investments.

Around 86.1 percent (3.337 billion manat) of investments in Azerbaijan's economy made by foreign countries and international organisations fell to investors from the UK, U.S, Japan, Norway, Turkey and Iran in January-July 2015.

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 31.8 percent, while investments totalled 1.23 billion manat.