Fuad Akhundov: The growth of Azerbaijan's economy demonstrates the minimal impact of global crisis

Results of the socio-economic development of Azerbaijan in January-May 2009 confirm the conclusion of influential international credit rating and financial institutions that the global crisis will affect our country to a minimum extent, said chief of department of the presidential administration of Azerbaijan Fuad Akhundov, according to Interfax-Azerbaijan.

Referring to the State Statistical Committee of Azerbaijan, he noted that Azerbaijan's GDP has grown over the past period 4.4% as compared to the same period of the last year, while non-oil sector growth was 6.6%.

“The positive trend is observed in all the sectors of the economy. And, for example, in non-oil sector growth in investment was a record 31,9%”, said F. Akhundov.

The increase in the volume of retail trade turnover by 8.2% is especially important, which indicates that the crisis has not hit the purchasing power of people.

By result of five months, the per capita GDP also grew by 3.2% to $ 1638, stressed F. Akhundov.

Commenting on the situation in the industrial sector, he noted that extractive industries developed faster - 2,7%, which ensured the industrial growth to 1.3%.

“In the manufacturing sector the situation was not so optimistic, though some sectors also experienced significant growth - pulp and paper industry - 3,5 times, mechanical engineering - 29%, production of transport equipment - 9,1%», - said chief of department.

With regard to strategic oil and gas sector, it is important to that during the last period oil production increase made 2.3% to 20.3 million tons, and natural gas - by 2,4% to 10 mlrd.kub . m.

“Contrary to many pessimistic predictions of local experts that the crisis will lead to a slowdown in investment activity in the Azerbaijani market, there has also seen a slight increase in 0,4%”, said F. Akhundov.

Interestingly, he noted that investments increased in all types of sources of investment - through bank loans, which grew by 75%, own funds of the people - here the increase was 43.5%, and extra-budgetary funds - by 17,3%, and the budget funds - by 22.3%.

The last figure, added F. Akhundov, is highly symbolic in nature - investment in the economy accounted for 47.2% of expenditure, reflecting the investment nature of the state budget.

“As President Ilham Aliyev promised, the national investment projects were financed independently of the unfavorable world economic conditions and the effects of the global financial crisis”, said F. Akhundov.

Growth in investment was observed in almost all sectors of the economy - agriculture, construction, transport, communications, and in the processing industry.

“While the volume of foreign investment decreased during the period by 52% to about $ 500 million, this drop did not affect the investment situation in the country, because its economy is growing mainly through internal investment, whose share in the total flow of investment is high and amounted to 82,8%. It is no coincidence that President Ilham Aliyev drew attention to the growth of domestic investment as an indicator of the powerful resources of the economy”, said F. Akhundov.

He noted that several changes occurred in the core group of investors - the traditional leaders of the United Kingdom, United States, Japan and Norway also involved France and Turkey.

Regarding the budget, he was executed with a surplus, concluded Akhundov.