$ 144.3 Million US Deficit for 4 Months

$ 144.3 US Million Deficit for 4 Months

The deficit of the foreign trade turnover of Azerbaijan totaled $ 144.3 million US in the first four months of 2016. Meanwhile, foreign trade balance had a surplus with amount of $ 867.2 US million in the same period in 2015. According to the State Statistic Committee of Azerbaijan, in January-April this year the volume of export-import operations with 152 countries comprised $ 5 billion 44 million US, a decline of 34.3%.

During the reporting period, imports were $ 2,594.1 million US (-23.8%), and exports were $ 2,449.8 million US (-42.6%).vThe second consecutive month recorded a negative balance of foreign trade. In April, it made $ 99.1 million. The share of raw hydrocarbons in the structure of exports in the four months was 86.17%, 2.29 percentage points more than in the comparable period last year. It is noteworthy that the volume of exports of non-oil products from Azerbaijan in the four months dropped by $ 264.1 million to $ 338.7 million.

CESD experts underline that the reason of having deficit in the foreign trade is related to legalization of import since January 2016. Lifting monopoly in export and import in Azerbaijan starting early 2016 resulted enhancing transparency in import goods’ registration. In fact, total import declined in the first four months of 2016, however, unlike 2015 figures 2016 figure is more realistic. In confirms that Azerbaijan had a deficit in 2015, too, however, it was not officially announced because illegal import turnover.

CESD warns that oil and oil products are still dominant in total export. Meanwhile, about 87 % of total export in the reporting period was oil and oil products. It confirms that non-oil export still has marginal contribution to the total export.

© CESD, 2016

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