Paradoxes of Economy of Nakhchivan

The State Statistics Committee of the Nakhchivan Autonomous Republic (NAR) released a report on the socio-economic development of the exclave in 2014, which caused surprise among experts as to the background of high macroeconomic indicators the local budget revenues amount to only 2.88% of its GDP.

In 2014, economic growth amounted to 1.3%. The volume of gross domestic product reached 2 billion 391 million manat. This is about 4%, and without oil economy it is 6.6% of GDP in Azerbaijan in the past year. Other figures are also striking: GDP per capita was 5,465.2 manat ($ 6,967.4), while in the country this figure including oil was 6,264.1 manat ($ 7,985.9). In Nakhchivan last year, industrial output was in the amount of 891.5 million manat (+ 2.5%). Across the country, the industrial production of non-oil sector amounted to 7 billion 189,800,000 manat. In other words, the share of Nakhchivan was 12.4% of the non-oil industrial product of the country.

Industrial enterprises exported goods worth $ 313.4 million.

Growth is also reported on other economic sectors of NAR. The only exception is the capital investments. For the year the economy of Nakhchivan was invested 924.6 million manat, which is 10.9% less than in 2013.

In 2014, revenues of the state budget of Nakhchivan were approved at the level of 66.8 million manat (without subsidies from the center in the amount of 283.7 million AZN). The ratio of budget revenues to GDP was 2.88%, while the nationwide fiscal revenues from non-oil sector (5 billion 817 million manat) accounted for 16.1% of non-oil GDP (35 billion 968,600,000 manat). -----08B