(MENAFN- AzerNews) By Mirsaid Ibrahimzade
Successful implementation of reforms and attracting of investments favorably affects the economic situation of Azerbaijan. The volume of industrial production in the country amounted to 27.3 billion manats ($16.05 billion) in January-July 2019, which is 2.2 percent more than in the same period in 2018.
The growth of industrial production in the non-oil sector reached 15.8 percent in the reporting period, the State Statistics Committee said in a message.
Large investments attracted in the non-oil sector make noticeable contribution to the diversification of economy and facilitate the less dependence on the oil and gas sector.
For instance, SOCAR Carbamide is the biggest project in Azerbaijan implemented in the non-oil sector. Its total cost is about 800 million euros, 197 million euros of which was allocated from the state budget of Azerbaijan, 500 million euros was provided via borrowed funds, and 80-85 million euros was allocated from tax and other deductions to the budget during construction, which SOCAR paid for from its own funds.
In January-July 2019, 70 percent of the industrial production volume in Azerbaijan accounted for the mining industry, 25.1 percent - for the processing industry, 4.2 percent - for production and distribution of electricity, gas and steam, and 0.7 percent - for water supply, waste treatment and processing.
In the structure of the processing industry, an increase was recorded in the production of finished metal products (59.2 percent), computers, electronics and optical products (55.4 percent), beverages (52.2 percent), textile products (40.9 percent), furniture (33.6 percent), chemical products (30.4 percent), cardboard and paper (28.5 percent), rubber products and plastics (27.2 percent), in the installation and repair of machinery and equipment (26.4 percent), production of tobacco products (25.2 percent), and food products (18.3 percent).
In the production and distribution of electricity, gas and steam, growth in January-July 2019 amounted to 3.2 percent, and in the water supply, waste treatment and processing - 7.4 percent.
In recent years, Azerbaijan has turned from an electricity importing country into a country exporting electricity. Azerbaijan, which has been exporting electricity to neighboring countries for a long time, has already begun exporting energy to European countries.
The volume of industrial production in Azerbaijan in 2018 amounted to 47.7 billion manats ($28.05 billion), which is 1.5 percent more than in 2017.
Thus, the State Program for the Development of Industry in Azerbaijan for 2015-2020 and the successful industrialization policy are yielding positive results.
Main directions of the State Program are 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.
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Mirsaid Ibrahimzade is AzerNews' staff journalist, follow him on Twitter: @MirsaidIbrahim1
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