Azernews.Az

President Ilham Aliyev praised Azerbaijan`s economic development at a cabinet meeting on Monday, saying the year has ``started successfully``.

President Aliyev said the fast-growing South Caucasus republic`s gross domestic product increased 0.5 percent in the first quarter of 2012, and non-oil sector GDP grew 7.7 percent. Though industrial production decreased by 0.3 percent, the share of non-oil sector in industry increased 16.5 percent, a record high since Azerbaijan`s independence, Aliyev told the cabinet meeting, which was devoted to the outcomes of social and economic development in Q1 and tasks facing the country.

The president said Azerbaijan`s economic indicators are positive, as the inflation rate was only 3.1 percent in January-March, and incomes of the population rose 14 percent. The 2012 state budget exceeds $20 billion, and the consolidated budget amounts to $25 billion. Azerbaijan`s strategic currency reserves are over $43 billion.

The president said a new strategy of the State Oil Fund, which holds Azerbaijan`s revenues from crude exports, has been outlined, and its investment portfolio and the amount of funds being placed enlarged. As a result, the country`s economic power further increased, he said.

Aliyev emphasized that domestic investments account for most of the country`s investment package.

He also said Azerbaijan has vast potential for exports and the government is interested in further increasing it.

According to the president, concessional loans worth 200 million manats (over $250 million) are to be allocated in Azerbaijan this year to boost the development of entrepreneurship.