2014, stable development year for Azerbaijan

/By AzerNews/

By Aynur Karimova

The year of 2014 was marked in the history of Azerbaijan as a year of stable development, strengthening of macroeconomic stability, further improvement of the welfare of the Azerbaijani population, as well as raising the authority of the country in the world arena.

This remark was made by Azerbaijan’s Economy and Industry Minster Shahin Mustafayev, who was speaking at the meeting of the Cabinet of Ministers on the results of socioeconomic development in 2014 and objectives for 2015 last week.

“Azerbaijan’s economy amounted to 50 percent of the economy of the South Caucasus in 2004 and now the share of our country has reached 75 percent,” he noted.

Mustafayev said in the past five years, the economic growth was ensured by the development of the non-oil sector and the share of the non-oil sector in the GDP increased from 47 to 60 percent.

“In the past years, a solid base was formed to create modern infrastructure, to implement a number of projects, to improve business and investment climate, to develop entrepreneurship, as well as to develop economy for successful strategy of the development of the regions,” he added.

Last year, real GDP growth amounted to 2.8 percent thanks to a 7-percent increase of the non-oil sector. The share of the country’s foreign debt in GDP was 9 percent and the strategic currency reserves reached the five-year level of import by hitting foreign debt many-fold. The revenues of the state budget amounted to 18.4 billion manats, and expenditures to 18.7 billion manats, while the share of the non-oil sector in the state budget increased by 19.5 percent. As a result of successful social-economic development of the regions, the tax incomes increased by 9.8 percent.

Last year, investments made in the Azerbaijani economy amounted to $27 billion, including domestic investment-$16 billion, and foreign investment-$11 billion. Thanks to the domestic investments, the Shamkirchay water reservoir, the first stage of the Baku international sea trade port and other facilities were commissioned, and the construction of several highways kept going on.

Mustafayev also noted currently, projects on the construction of education and medical facilities, as well as sports facilities for the first European Games, improvement of gas and water supply systems of 43 cities and regions, as well as reconstruction of the canalization networks are successfully underway.

The minister believes 2014 was an important year in the development of industry. Laying the foundation of the Southern Gas Corridor in the 20^th anniversary of the ‘Contract of the Century’ increased Azerbaijan’s authority as a reliable partner, and will serve to Azerbaijani people’s interests for a long term.

“In 2014, over 230 industrial enterprises were commissioned, the production capacity of existing industrial facilities were expanded. As a result of development of industry in recent years, the production of several products, including cement, gypsum, paving blocks, metal ware and dyes and others gives an opportunity to meet domestic demands,” he added.

In 2014, Azerbaijan established the “Azerbaijani complex for steel production” to ensure the effective operation of Dashkasan ore processing combine. Works on the creation of internal and external infrastructures in the Sumgayit chemical-industrial park are also underway. The residents operating in the park have already started the production of steel and polyethylene pipes, hydrotechnical equipment, polypropylene and polyethylene of high density, and sheet glass.

Mustafayev believes the state program on development of industry in Azerbaijan in 2015-2020 will give an impetus to the development of industry in the coming years.

“Last year over 190 educational, 60 medical, 11 youth and sport, as well as 43 cultural and other social facilities were constructed or reconstructed in the Azerbaijani regions,” he added.

In 2014, state support to the development of agriculture was continued as well. The government applied additional benefits to the farmers. Works on establishment of 19 large farms in 12 regions were continued with the state support.

Last year in accordance with a presidential decree on additional measures on the development of entrepreneurship, works on further development of business and investment climate, including the simplification of procedures, expansion of online services, prevention of unwarranted interventions continued as well.

The National Fund for Entrepreneurship Support under the Economy and Industry Ministry allocated preferential loans worth 295 million manats to 5,560 entrepreneurs in 2014. These funds are aimed at the creation of 12,500 new working places.

The inflation rate stood at 1.4 percent, the population’s revenues amounted to 4.8 percent, and the monthly salary increased by 4.2 percent reaching 443 manats. Some 9.9 percent of the state budget was allocated to the social issues.

The employment level of the population increased, and over 123,000 new working places were created. The level of unemployment decreased to 4.9 percent and the poverty level to 5 percent.