Azernews.Az

By Seymur Aliyev

Investments in the Azerbaijani economy from all sources will amount to 71.8 billion manats ($91.4 bln) in 2013-2016, Economic Development Minister Shahin Mustafayev said during a discussion of the draft state budget for 2013 and the following three years on Tuesday.

"Some 32.7 billion manats will be invested in the country's economy, 21 billion manats of which will account for infrastructure projects, and 8.7 billion manats for transportation projects," Mustafayev said.

He added that 4.8 billion manats will be directed to municipal infrastructure projects. Providing gas to the cities and regions of the country will be completed; water, sanitation and heating lines in urban and regional centers will be reconstructed.

"It is planned to invest 5.7 billion manats in the implementation of energy and industrial projects in this period, and 5.1 billion manats in social responsibility projects," Mustafayev said.

Azerbaijan's government expects real growth of investments in the country at 17.3 percent in 2013, unchanged from 2012.

In 2010, the growth was recorded at 21.2 per cent, and in 2011 it was 27.3 percent.

However, the government forecasts investments in Azerbaijan to decrease by 1.9 percent in 2014, but growth will later resume, with a 1.2 percent increase expected in 2015 and a 0.9 per cent increase projected in 2016.

Investments are expected to make up 15.218 billion manats in 2012, 18 billion manats in 2013, 17.672 billion manats in 2014, 17.932 billion manats in 2015, and 18.189 billion manats in 2016.

More than $130 billion, of which more than a half is made up by foreign investments, has been invested in the country's economy as a result of the favorable investment and business climate since 1995, Minister Mustafayev said at an Azerbaijani-Dutch business forum in Baku in September.

In January-August 2012, 91.4 percent of investments in Azerbaijan's economy made by foreign countries and businesses accounted for investors from the UK, U.S, Japan, Norway, Turkey, the Czech Republic and France. The UK continues to hold its leading position. Its share in the total foreign investments was 47.2 per cent in this period.

According to the State Statistics Committee, total investments in Azerbaijan's economy were about 14 billion manats in 2010. In 2011, the figure reached 17 billion manats.

In recent years, Azerbaijan's efforts in boosting the non-oil sector have affected the breakdown of investments. According to data for the first nine months of 2012, 74 percent of the funds were channeled into the development of the non-oil sector of the economy.

The official exchange rate as of November 13 was 0.785 manats per USD.