(MENAFN- Trend News Agency)
BAKU, Azerbaijan, Jan. 22
By Leman Zeynalova – Trend:
Azerbaijan has made great strides in channeling oil revenues into the non-oil sector, Trend reports.
The non-oil sector growth in Azerbaijan amounted to 20 percent in 2021, which is the record level in the history of the country's independence.
VAT receipts in the non-oil industry increased by 17 percent in 2021. The highest growth rates of tax revenues in Azerbaijan's non-oil sector were recorded in catering – 84.1 percent, retail trade – 53.7 percent, industrial sector – 29.3 percent, and the service business – 19.7 percent in 2021.
The value added in the non-oil industry of Azerbaijan increased by 17.8 percent in 2021. The share of the non-oil industry in non-oil Gross Domestic Product (GDP) reached 9.6 percent in 2021, which is higher than in 2020 (8.5 percent) and 2019 (7.6 percent).
The growth rates of the non-oil economy have increased by 7.2 percent, and the non-oil industry has risen by nearly 20 percent.
With the world trade growth projection at the level of 10.8 percent, non-oil exports of Azerbaijan increased by 47.2 percent in 2021. This non-oil export growth is a record high.
Azerbaijan's non-oil exports in 2021 increased by $870 million compared to 2020 and amounted to $2.7 billion. In 2021, the share of fruits and vegetables in non-oil exports amounted to $630.4 million. In the same year, Azerbaijan recorded a doubling of exports of ferrous metals and manufactures thereof, export increase in cotton yarn – by 3.1 times, sugar – by 19.2 percent, chemical industry products – by 2.9 times, cotton fibers – by 58.3 percent, aluminum and manufactures thereof – by 66.2 percent.
The largest importers of Azerbaijani non-oil production are Russia, Turkey, Switzerland, Georgia and some other countries.
In the near future, industrial zones, to which the Azerbaijani government attaches special importance, will serve as the basis and driving force of the non-oil industry.
Due to the increased role of the non-oil sector as the main source of economic growth, the steady increase in the non-oil revenues share is also expected to be achieved.
According to the projections of the Azerbaijan's Ministry of Economy, the share of the non-oil sector in GDP will reach 72.9 percent, and the oil sector – 27.1 percent by 2025.
Table of Azerbaijan's projected volume and share of the non-oil and oil sectors in GDP for 2021-2025
| Year | GDP | Share and volume of the non-oil sector in GDP | Share and volume of the oil sector in GDP |
| 2021 | 82.2 billion manat ($48.3 billion) | 55.1 billion manat ($32.4 billion) (67,0%) | 27.1 billion manat ($15.9 billion) (33,0%) |
| 2022 | 87.5 billion manat ($51.4 billion) | 59.6 billion manat ($35 billion) (68,1%) | 27.9 billion manat ($16.4 billion) (31,9%) |
| 2023 | 92.4 billion manat ($54.3 billion) | 64.5 billion manat ($37.9 billion) (69,8%) | 27.9 billion manat ($16.4 billion) (30,2%) |
| 2024 | 97.9 billion manat ($57.5 billion) | 69.5 billion manat ($40.8 billion) (71,0%) | 28.4 billion manat ($16.7 billion) (29,0%) |
| 2025 | 102.6 billion manat ($60.3 billion) | 74.8 billion manat ($44 billion) (72,9%) | 27.8 billion manat ($16.3 billion) (27,1%) |
According to Deputy Head of the Market Research Department at the Russian Gazprombank Gulnara Khaidarshina, in the medium term, the high scenario implementation for the growth of Azerbaijan's non-oil and gas exports is highly probable.
According to her, an increase over four years should be $1.2 billion in order to reach the target of $3.6 billion in 2025.
'This volume is easily achievable given the high export potential of Azerbaijan and the expected construction of new export-oriented industries in Karabakh. Considering the record growth in non-oil and gas exports, the continued comparable momentum of non-oil and gas exports through the implemented measures, will increase its share in total exports to nearly 20 percent by 2025,' Khaidarshina said.
According to her, there is also a potential for further development of metallurgy, for which Azerbaijan has the necessary natural resources and energy capacities.
In recent years, the creation of an intersectoral balance to ensure economic stability in Azerbaijan, and efficiently use the natural and material resources stills remains relevant. State programs and measures implemented by the government laid the foundation for the development of the non-oil sector.
Currently, the state has chosen the growth in the non-oil sector as a priority. Therefore, the country's attention is focused on improving the welfare of the population, shifting to an export-oriented economy, and increasing its competitiveness.
The progress in the non-oil sector requires the diversification of the economy. In this regard, one of the important issues facing the state is to accelerate the process of diversification. The development of individual regions also plays an important role in this area. Creating a favorable environment for the non-oil sector evolution in Azerbaijan and stimulating the private sector's economic activity are one of the important tasks faced by the state.
The development of the non-oil sector plays a crucial role in ensuring the national economic security of Azerbaijan.
MENAFN22012022000187011040ID1103578332
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.