Azerbaijan's non-oil sector to boost growth

The growth rate in the non-oil sector of the Azerbaijani economy exceeds the growth rate in the oil sector, which ensures positive growth throughout the economy. The development of agriculture, information, communication, transport, environmental and tourism areas is a priority for Azerbaijan’s economic development.

Based on State Statistics Committee data, an increase in industrial production was recorded in many areas of the non-oil sector in the eight months of 2011. Growth rate has reached 10.4 percent.

During the reported period, the volume of production in the mining industry decreased by 5.5 percent, while the figure was 3.8 billion manat in the processing industry, with an increase of 9.8 percent.

This increase was mainly achieved through the production of food products (with annual growth of 7 percent), metallurgy (79.8 percent), clothing (60.3 percent), chemicals (53.2 percent), machinery and equipment installation and repair (53.4 percent), and their production (25.4 percent). Production of paper and wooden boards grew by 33.4 percent, alcohol by 30 percent, and computers and other electronic equipment by 20.6 percent, etc.

The role of Azerbaijan’s non-oil sector gradually increases in investments which flow into the country. Based on official statistics, some 71.8 percent (3.944.4 billion manat) of funds invested in the main capital in Jan.-Aug. 2011 are directed toward the development of Azerbaijan’s non-oil sector, including 14.9 percent (816.9 million manat) in the non-oil industrial sector.

Thus, the country is implementing large-scale industrial projects, including projects to build a shipyard, three cement plants, a new sea port, and a new international terminal at the Heydar Aliyev international airport, reconstructing the railway industry, and establishing a railroad car repair plant. About 60 industrial objects were put into operation in the country in 2010 and another 80 industrial enterprises are in various stages of construction. Most of them will be located in the Garadag district of Baku, Ganja and Sumgait, where three industrial zones will be set up.

As for export of non-oil products, Azerbaijan’s non-oil sector yields to the oil sector, but demonstrates the growing indicators. Based on the most recent payment balance of Azerbaijan, the total value of exports in the non-oil sector amounted to $786.0 million in January-June 2011, with an increase of 11.9 percent, compared to the same period in 2010.

Thus, the share in the non-oil sector in Azerbaijan's exports amounted to 4.1 percent, compared to a 95.9 percent share of oil products in the country’s total exports.

Today, Azerbaijan is exporting non-oil sector products such as electrical machinery, equipment, parts, chemicals, food (including sugar, fruits and vegetables), cotton, and other such products, as well as textile industry products


Ellada Khankishiyeva
/Trend/