Reduced Foreign Direct Investment in Azerbaijan
On the Azerbaijan balance of payments statistics the Central Bank says $ 7.5 billion of foreign direct investment into the local economy in the last year (minus 6.2% for the year with an investment at $ 8 billion in 2014).
A large part (88.5%) of the total volume of financial investments was invested in the oil and gas sector. In other sectors of the economy there was invested $ 860.4 million (minus 34.7%).
However, local investors spent abroad in direct investment $ 3 billion 259.7 million (+ 47.6% YoY). $ 1 billion 806 million was invested in oil and gas (+ 21.9%), in other areas - $ 1 billion 453.7 million (+ 100%).
Last year, the net financial assets of Azerbaijan amounted to $ 13 billion 720.8 million (+ 17.3%) with commitments of $ 4 billion 695.6 million (minus 43.2%). --17D-
Economics
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Azerbaijan's financial standing continues to strengthen as the country's foreign currency reserves have surged to $71 billion as of January 1, 2025, according to the Ministry of Finance. This figure, which includes reserves held by the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA), far exceeds the nation's external debt, which stands at a fraction of its reserves, specifically nearly 14 times less. This robust reserve position reflects Azerbaijan's fiscal stability and the government’s strategic economic management.
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According to operational data from the Ministry of Energy of Azerbaijan, in January 2025, the country produced 2.3 million tons of oil, including condensate, and 3.9 billion cubic meters of gas.
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The State Oil Company of Azerbaijan (SOCAR) has opened a representative office in Albania and is set to launch a specific project this year, the Albanian company "Albgaz" announced.
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"Azerbaijan is currently among 54 middle-income countries," said Shahmar Movsumov, head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, during the presentation of the World Bank’s World Development Report 2024 in Baku on February 10.
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