Azernews.Az

By Nigar Orujova

President Ilham Aliyev praised Azerbaijan's economic growth last Wednesday at a meeting of the Cabinet of Ministers aimed to discuss the results of the country's social and economic development over nine months of 2012 and outline further priorities.

President Aliyev said Azerbaijan's economy grew 1.1 per cent in the nine-month period, adding that the non-oil sector increased 10.3 per cent.

The president noted that $16 billion had been invested in the country's economy over the three quarters of 2012, and some 70 per cent of the investment came from domestic sources.

Aliyev said the share of the private sector in the Gross Domestic Product was 83 per cent. The agricultural sector saw a 6.3 per cent increase. Strategic currency reserves grew $5 billion from the beginning of the year to reach $45 billion.

The president also said work continued to study new directions of currency reserves management.

Aliyev said development of the country has had a positive impact on the living standards of citizens. He said the population's income has grown 12 per cent this year.

"The inflation stood at just 1.5 per cent, while the average monthly wage is $500 and the pension is $190," he said.

President Aliyev stressed that industrial production has been decreasing in recent years, adding that this trend continued in the nine months of this year.

"However, development processes are progressing at a rapid pace in Azerbaijan, and international financial institutions and leading rating agencies praise our country's achievements."

Aliyev said the implementation of the state program on social and economic development of Azerbaijan's regions has seen the creation of 1.1 million jobs so far. Also, 188 schools have been built and 103 schools have been reconstructed since the start of this year.

The president said further that Azerbaijan has gained immense success on the world stage.

"Azerbaijan's position was welcomed with great sympathy in the UN Security Council. All 120 member states of the Non-Aligned Movement support Azerbaijan's territorial integrity, which means that three-fourths of the world community says that the Armenia-Azerbaijan Nagorno-Karabakh conflict must be resolved in compliance with the principle of territorial integrity."

The president emphasized the establishment of cooperation with Latin American countries, saying "we are gaining new partners worldwide".

Chairman of the Central Bank Elman Rustamov, Transport Minister Ziya Mammadov and Minister of Labor and Social Protection of the Population Fuzuli Alakbarov delivered reports on what had been done in the country in nine months of the year, and outlined further priorities.

The Central Bank head Rustamov said foreign direct investment (FDI) in the non-oil sector of Azerbaijan's economy will reach $1 billion by the end of 2012.

"Azerbaijan recorded high investment activity," Rustamov said. "Investments rose by 27 percent in the country in the first nine months of 2012. The growth rate in the non-oil sector was 31 percent."

In the first half of 2012, 38.6 percent of the total investments in the non-oil sector accounted for industries, while 17.1 per cent -- for transportation and warehousing, 5 percent for agriculture, and 2.2 percent for trade. 10.4 percent of the amount was made up by real estate transactions, 3 percent by communication and information technologies, 1.7 percent by healthcare, 2.9 percent by education, 5.3 percent by leisure, entertainment and culture, 6.7 percent by public administration, one percent by finance and insurance, 2.6 percent construction, 1.8 percent administrative services and assistance, and 1.6 percent catering and tourism.

According to Rustamov, 284 enterprises have been opened in the Azerbaijani regions this year, while 444 more are being established.

Rustamov said Azerbaijan has a stable and dynamic budget system. "In the reporting period, expenses of the budget increased 27 percent, with investment expenses rising 20 percent. Non-oil tax revenues grew 14 percent. The budget forecast was completely fulfilled, with a surplus reported."

According to Rustamov, dynamic development of the non-oil sector has allowed Azerbaijan to solve the unemployment problem.

"The employment rate is 95 percent in the country. About 430,000 jobs have opened since the beginning of 2008. For instance, 94,000 jobs were created in the first nine months of this year alone, while real cash income of the population increased by 12 percent," Rustamov stressed.

The Central Bank chairman said Azerbaijan forecasts that the current account surplus of the balance of payments will stand at $16-17 billion by the end of 2012.

According to the CBA, the current account surplus of payment balance amounted to $8.2 billion in the first half of 2012, whilst in 2011 it was $17.1 billion.

Rustamov said Azerbaijan has strengthened its position in the group of countries with its average income. "GDP per capita exceeds $10, 000," he said. "Azerbaijan leaves 100 world countries behind on this index."

The processes reflect the diversification in the structure of trade and balance of payments is evident.

"The volume of exports exceeds imports three fold," he said. "Exports of non-oil goods and services in 2012 are expected to reach $5 billion which exceeds the figure of 2008 two fold. Export of services also increases. It hits 60 per cent of the country's non-oil exports today."

Transport Minister Ziya Mammadov, in his speech at the Cabinet meeting, said that total volume of investments in Azerbaijan's transport sector amounted to 1.7 billion manat ($2.2 billion) in nine months of this year.

According to Mammadov, 114 million tons of cargo and 1.2 billion passengers were transported by Azerbaijan's transport sector in January-September. 16.7 million tons of the total volume of transported cargo accounted for rail, 9.3 million tons - water, while 87.9 million tons - road transport.

In January-September, the country's ports handled 9.1 million tons of various cargo, Mammadov added.

In his closing remarks, President Aliyev issued instructions to officials with respect to maintaining the inflation level, continuing measures to eliminate the consequences of a recent earthquake that happened in the western regions, improving living conditions of refugees and IDPs, building and reconstructing schools, kindergartens and new roads, meeting the population`s demand for gas, electricity and drinking water, and ensuring food security.

President Aliyev said the amount of preferential loans allocated to entrepreneurs will be 300 million manats (over $382 million) in 2013.

The president noted that budget expenditure will be at 20 billion manats (over $25.4 billion) next year.

Aliyev stressed the need for adopting the State Investment Program by the end of this year.

He also said gas production in the country increased.

The president noted that production of gas from the Umid field in the Caspian Sea started, stressing the importance of the Trans-Anatolian gas pipeline project.

Aliyev underlined the importance of further expanding transport infrastructure in the country, and speeding up the development of industrialization as well as Baku and suburban settlements.

The president expressed confidence that Azerbaijan's achievements would continue.