Decline After Speedy Growth

Decline After Speedy Growth

The decline in the oil sector at 9,3% resulted in the fact that economic growth in Azerbaijan has become the worst among CIS in 2011

Low economic growth last year, is uniquely associated with a fall in the oil sector, Center for Economic and Social Development (CESD) reported. “In 2010, Azerbaijan produced 51 million tons of oil. In 2011 this figure fell to 46 million tons. The following year, this figure does down to 42 million tons. If, on the one hand, there is a natural process of falling production, then, on the other hand, last year there were maintain works in some oil platforms. As a result, according to official results of 2011, the oil sector experienced declines by about 9,3%. Given a sufficiently high proportion of the oil sector, the low economic growth is quite understandable. Unlike the oil sector, non-oil sector has been an increase in the amount of 9.4%. ” In this regard, as noted CESD, a slight increase in the economy due to an increase in non-oil sector.

Recall that, according to the CIS Statistical Committee, 2011 on the basis of the lowest in the CIS economic growth was registered in Azerbaijan (0.1%). While, on the summary data of the CIS Interstate Statistical Committee, the highest in the CIS economic growth in Turkmenistan – 14.7%. In second place is Uzbekistan, where growth was observed at 8.3%. Further, in the first five are located Kazakhstan (7.4%), Tajikistan (7.4%) and Moldova (6.7%). From the sixth to the ninth position settled Kyrgyzstan (5.7%), Belarus (5.3%), Ukraine (5.2%) and Armenia (4.4%). It should also be noted that in Russia, which is located on the line above, Azerbaijan, economic growth last year was 4.3%.

Meanwhile, the country’s economic growth rate both in the first quarter of 2012 and in 2011, for the first time, decreased to its lowest level since 1996. The main cause of this was the decrease in the oil sector by 5.8%. In this respect, even the 7,7% growth in the non-oil sector in the first quarter of 2012 could not counteract this negative impact on economic growth. Fall in the oil sector has also had a negative impact on the whole industry and a 0,3% decrease has already been noticed in this field.

According to State Statistic Committee, GDP was 12.3 billion manat ($ 15,78 billion) and GDP per capita was 1 346 manat ($ 1 725) in the first quarter of 2012. 61.3% of GDP was generated in the industry, respectively it was 2.4% in agriculture, forestry and fishing, 4.9% in construction, 6.5% in trade and service fields on maintenance of transport means, 4.5% in transport and warehouse, 1.4% in accommodation of tourists and in the field of catering services, 1.6% in services on information and communication, 10.9% in the field of social and other types of service.

According to the State Committee, production in Industry field decreased by 0.3 % in the first quarter of 2012 compared to the same period in 2011. State reports indicate that share of industry in GDP was 61,3 % in the first quarter of 2012. The main reason of decline in industry was fall in oil production since oil sector is still dominant in industry sphere, too.

© CESD, 2012


Leave A Comment