GDP, industrial production up

10 June 2019 10:00 (UTC+04:00)

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By Mirsaid Ibrahimzade

Coherent implementation of reforms and infrastructure investment favorably influence on economic situation in Azerbaijan. The government expects GDP growth at 3.6 percent in 2019, which will be achievable thanks to the growing capacity of the non-oil sector.

Shahin Mustafayev, Economy Minister of Azerbaijan, has said that the State Program for the Development of Industry in Azerbaijan for 2015-2020 and the successful industrialization policy are yielding positive results.

He said that Azerbaijan recorded the highest non-oil industrial production in the past three years, noting that in 2015 it went up by 8.4 percent, in 2016 - by 4.8 percent, in 2017 - by 3.7 percent, and in 2018 - by 9.1 percent.

Touching upon the program, the minister said that it envisages the modernization of the industry and enhancing it structure, rising export possibilities of the non-oil sector and expanding competitive industrial goods, training highly-qualified staff for new spheres.

Mustafayev also noted that favorable business and investment environment in Azerbaijan attracts investors.

In the first quarter of this year, $2.8 billion were invested in Azerbaijan’s economy, $2 billion of which was invested in the non-oil sector. During this period, the GDP grew by 3 percent.

The share of industry in Azerbaijan’s GDP in 2015 was 32.9 percent, in 2016 - 37.1 percent, in 2017 - 40.1 percent, in 2018 - 44.2 percent and in the first quarter of 2019 - 46 percent.

Mustafayev said that last year, industrial production in Azerbaijan increased by 1.5 percent. The development trend continued in 2019 as well. In the first quarter of this year, growth in the non-oil sector was 1.7 percent, in industrial production - 4.4 percent, and in the non-oil industry - 15.6 percent.

The State Program for the Development of Industry in Azerbaijan for 2015-2020 was approved by President Ilham Aliyev on December 26, 2014.

Main directions of the program is increasing competitiveness of the industry and strengthening its capacity, supporting activities of industrial enterprises, strengthening human capital and scientific support and improvement of legislation which is expressed in improvement of legislative base regulating the activity of industrial enterprises.

The results expected from the 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 of the share of regions in industrial production, increase of the number of enterprises applying technological innovations, widening the use of international standards in the industry, increase of the number of enterprises applying technological innovations, etc.

As for the sources of financing of the state program, it is noteworthy that it is mainly funded by 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.

Mirsaid Ibrahimzade is AzerNews’ staff journalist, follow him on Twitter: @MirsaidIbrahim1