TODAY.AZ / Business

Capital's industrial production grows

16 August 2019 [10:35] - TODAY.AZ

By Azernews

By Leman Mammadova

Baku, the capital of Azerbaijan, remains the driving force of the industrial development of the whole country.

The volume of goods and services produced in Baku in the first half of 2019 amounted to 19.9 billion manats ($11.71 billion), Baku City Statistical Office said in a message. This is 0.7 percent more than in the same period last year.

Mining industry accounted for 81.3 percent of the industrial production, processing sector – to 16.7 percent, electricity production – to 1.5 percent, and the waste treatment and recycling sector – to 0.5 percent.

The share of the private sector in industry was 83.9 percent, while the share of industrial production in the total production totaled 88.9 percent, and the share of industrial services – to 11.1 percent.

Most of the manufactured products were shipped to consumers, taking into account the reserves created in previous periods. As of July 1, stocks of finished products in the warehouses of industrial enterprises amounted to 253.3 million manats ($149 million).

There are also other products in the amount of 53.8 million manats ($31.66 million), purchased from other enterprises and intended for sale.

The industrial production in Azerbaijan increased by 1.5 percent in 2018. The share of industry in Azerbaijan’s GDP in 2015 was 32.9 percent, in 2016 - 37.1 percent, in 2017 - 40.1 percent, and in 2018 - 44.2 percent.

Increasing industrial production in the country is one of the main goals to strengthen the non-oil economy in Azerbaijan.

In this regard, the State Program for the Development of Industry in Azerbaijan for 2015-2020, the successful industrialization policy, activities of industrial parks and districts are yielding positive results.

At present, there are 5 industrial parks in Azerbaijan - Sumgayit, Garadagh, Mingachevir, Pirallahi and Balakhani, as well as 3 industrial districts - Neftchala, Masalli and Hajigabul. In addition, work is underway to launch the Sabirabad industrial zone.

The state program envisages modernizing the industry and enhancing it structure, rising export possibilities of the non-oil sector and expanding competitive industrial goods, as well as training highly-qualified staff for new spheres.

The results expected from the state program include transformation of the non-oil industry into the main driver of the economic growth as a result of its modernization and diversification, increase in the share of regions in industrial production, increase in the number of enterprises applying technological innovations, widening of the use of international standards in the industry, etc.

The state program is funded from the state budget, extra budgetary funds, funds of the National Fund for Entrepreneurship Support and the resources of the Azerbaijan Investment Company. There are also additional minor sources of support provided by local budgets, private investments, foreign direct investments and financial and technical assistance of the international and foreign organizations.


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