(MENAFN- AzerNews)
Akbar Novruz
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Baku's trade turnover has shown steady growth from January to
August 2024, reaching a total of 21,521.0 million manats, a clear
indication of the city's economic resilience. According to data
from the Baku City Statistics Department, both food and non-food
sectors contributed to this increase, reflecting the broadening
scope of consumer demand in Azerbaijan's capital. This positive
trend reflects a robust economic performance in the capital
city.
Food products, beverages, and tobacco sales reached 11,722.1
million manats, reflecting a robust demand for essential goods. On
the other hand, non-food product sales, which rose to 9,798.9
million manats, demonstrate an expanding market for goods like
electronics, apparel, and household items. With that, investors can
capitalize on a wider array of industries, such as retail,
distribution, and logistics, due to the diversification in consumer
spending patterns.
The growth in Baku's trade turnover is not just a reflection of
increasing consumer purchasing power but also a sign of the city's
maturation as a regional economic hub. The strategic positioning of
Baku within the Caspian region, coupled with rising demand for both
essential and luxury goods, is setting the stage for long-term
commercial viability.
Prospects for foreign and local investors
The trade structure in Baku clearly underlines its investment
potential. A significant 37.2% of consumer goods
were sold through legally recognized enterprises, while individual
entrepreneurs accounted for an impressive 47.8% of
the trade. Even though the city's commodity markets are responsible
for a smaller 15% share of the trade, they still
play a crucial role in the local economy. This distribution
unequivocally indicates that there are ample investment
opportunities for both large enterprises and smaller-scale
businesses, providing a versatile platform for different types of
investors. Foreign investors, in particular, might find these
statistics encouraging as they present Baku as a city with a
growing middle class and rising consumer demand. The non-food
sector, which recorded the largest percentage increase, could be
desirable to international brands looking to enter the Azerbaijani
market.
The growth in trade turnover also underscores the need for
enhanced infrastructure, particularly in terms of distribution
networks, storage facilities, and retail spaces. In that case, Baku
will require upgraded logistics and warehousing to maintain supply
chain efficiency.
Furthermore, Baku's active participation in regional trade
corridors, such as the Belt and Road Initiative and the Middle
Corridor, firmly situates the city as a strategic link between
Europe and Asia. Investors seeking to capitalize on these
geopolitical advantages can confidently anticipate significant
returns, especially in sectors related to transportation,
logistics, and cross-border trade. While Baku expands trade
turnover rates, it reflects the city's dynamic growth and the
increasing sophistication of its economy. Baku is undoubtedly a key
player in the region's economic landscape, offering diverse and
promising avenues for investment.
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