No Comments - Poverty in Azerbaijan

The World Bank published an analysis of the economies of the countries of the South Caucasus, according to which the poverty level in Azerbaijan is several times higher than official government data.

In the analytical review titled "The South Caucasus in Motion" there are data on regions of Azerbaijan in 2015 - in the year of a double collapse of the national currency against freely convertible currencies. In Baku, 16% of the population lived below the poverty line. At the same time, this is the lowest poverty rate in the country. In other cities, one of every four lived below the poverty line. In the Ganja-Gazakh economic region, this indicator reached 33%. In rural areas, the poverty rate was 30%. The official indicator of the poverty level in the country that year, as well as in the subsequent period, was about 5%.

Source: Turan IA

Azerbaijan in oil figures

Ò  %53.1 of GDP

Ò  %58 of Budget income

Ò  %90 of export

Ò  %90 of foreign investments into the oil industry shows dependency of country on oil

According to OPEC data on oil production:

              - In 2095 S.Arabia

              - In 2125 United Arab Emirates

              - In 2135 Kuwait

              - In 2025 Azerbaijan will finish its oil production

I am really interested what kind of plan does the government have when the oil will be finished, since major portion of the budget comes from the SOFAZ (almost half) and the rest are invested into the non-liquid actives. I will have some data later on it as well... 

GDP in 2019

Over the five months of this year, gross domestic product was made in Azerbaijan for a total of 30.6 billion manat ($ 18 billion), which is 2.2% more than in the comparable period of 2018, the State Statistics Committee reports.

For the first time in many years, the share of taxes on goods produced in the country and imports reached 9.3%. For comparison, we note that for the same period last year, this figure was 7%. The share of industry in the structure of GDP over the five months of this year was 46%, trade - 9.9%, transport - 6.4%, construction - 5.9%, agriculture - 3.7%, etc.

Let's put some math...

18/5=3.6 is monthly average so, for 2019 our expectation is 3.6x12= $ 43.2 bln

GDP per capita 4.32 thousands whereas it was 7.2 in 2010s. This is reality where we stand...

Let's dig deeper, here is update:

Over the five months of this year, the surplus on foreign trade operations in Azerbaijan amounted to 2,780.9 million USD, which is 20.9% less than in the comparable period of 2018, the State Customs Committee said.

The volume of import-export operations in January-May of this year with 174 countries of the world amounted to $ 14,449.2 million, which is 28.7% more than in the same period of 2018. During this period, imports of goods ($ 5,834.1 million) increased by 51.3%. The growth of import indicators is also associated with the intensification of investment activities of the State Oil Fund. Over the specified period the Fund bought gold bars worth $ 1.4 billion. Due to this and other factors, the share of the public sector in the import structure increased from 15.5% ($ 598.3 million) to 39.7% ($ 2,315.8 million).

Do we really have 2.2% growth???

Azerbaijan increases PPP

Azerbaijan increases purchasing power parity (PPP) of the minimum wage (250 manat or $ 147) from September 1 of this year will affect 950,000 workers, including 350,000 in the private sector. To finance this growth, annually 780 million manat will be required from the state budget. This year alone, the government will send 245 million manat for these purposes.

In other words, it will be increased from 180 manat to 250 manat. 70 manats for $ 42 from $ 105. Big myth lose its weight on figures... 

We need to change in different way

Recently need interview which clarified my wrong understanding from Emin. But, I still think that we need to do changes in economic way and get a good education enlighten people and assisting them in raising their voices against of .... so many things... 

Sad...

Sad news on Meydan.TV source that I check daily.

Average montly salary

The average monthly wage in Azerbaijan in January-February was 554.9 manat ($ 326.4), the State Statistics Committee said. According to the same source, this is 0.5% less than in January.

In general, the average monthly salary for the two months of 2019 was 8.6% higher than the figure for the same period last year.

Nobody, focus on historical figure that before it was more than $ 500 and in 2015 it decreased in dollar amount almost twice. Now, increases of 10, 20 or even 30% will not provide the same amount. In reality, instead of increase we have not reached 2014's figures.

How long can people be deceived? When government will stop this?