Azerbaijani Nominal GDP Declined by 18.0 %

Azerbaijani Nominal GDP Declined by 18.0 %

Azerbaijan’s nominal GDP in the first month of 2015 fell by 30.6% against December 2014 and by 17.9% against January 2014. The State Statistics Committee reports that in January 2015 Azerbaijan’s GDP totaled AZN 3.631 billion ($ 4.629 billion) that in comparable prices is by 4.4% more than GDP for January 2014 (AZN 4.423 billion), that is nominal GDP fell by 17.9%. The real non-oil GDP grew by 5.5% in January and oil GDP increased by 3.1% compared to previous month.

Monthly GDP per capita was $ 488.5 in January 2015. Deflator index of Azerbaijan’s GDP was equal to -21,4% against -0,7 % a year before.

The share of production sector in GDP was 47.97 % (AZN 1.742 billion against AZN 2.637 billion a year before) with real rise of 4%, services – 42.01% (AZN 1.525 billion against AZN 1.446 billion) with rise by 5.2 %, and net production and import taxes – 10% (AZN 363.8 million against AZN 340 million) with a rise of 4.6%.

In 2014 Azerbaijan’s GDP totaled AZN 58.98 billion ($75.19 billion) that in comparable prices is by 2.8% more than GDP for 2013 (AZN 58.18 billion). The non-oil GDP grew by 7.0 % and the oil GDP fell by 2.9%.

CESD experts underlined that the reason of the GDP decline is dropping of crude oil price in the world market. Oil income in January, 2015 declined by 35.0 % compared previous month although the export volume dropped only by 13.4 % in the indicated period. In January 2015, Azerbaijan exported almost the volume of oil in June 2014. If the country received only $ 760 million US in January 2015, its oil income was $ 1.76 billion US in June 2015. It confirms that dropped oil price in the world market has dramatically decreased Azerbaijan’s revenues: in spite of the fact that he same amount export in January 2015 with June 2014 but income was 2.31 time less last month. Azeri oil price has declined by 2.29 times in the last 7 months. Azeri oil price has never had such a sharp decline since the first oil was pumped from Baku through BTC in 2005.

© CESD, 2015

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