Foreign trade of Azerbaijan (January-March 2017)

The foreign trade turnover with 149 world countries amounted to $4.1 billion in January-March 2017, or by 15.31 percent more than in the same period of 2016.

The volume of exports increased by 49.2 percent and amounted to $2.6 billion in January-March 2017 compared to January-March 2016. The volume of import decreased by 17.12 percent and reached $1.5 billion.

Azerbaijan exported 1,553 goods and imported 5,952 different goods.

The black ink of foreign trade balance was estimated at $1.1 billion in January-March 2017, while a trade deficit worth $78.36 million was observed in January-March 2016.

As in previous periods, oil, gas and oil products were mainly exported from Azerbaijan in January-March 2017.

Main products exported from Azerbaijan

Source: Azerbaijani state customs committee

Growth was observed in almost all main types of products exported from Azerbaijan in January-March 2017.

Most of Azerbaijan’s exports as of January-March 2017 (76.28 percent) accounted for the export of crude oil. During the reporting period, the country exported oil worth $1.99 billion. The cost of crude oil exports increased by 46.9 percent in January-March 2017 compared to January-March 2016. Currently, SOCAR supplies oil from Azerbaijan to more than 30 countries in Europe, Asia and America.

According to the Azerbaijani State Customs Committee, as of January-March 2017, the export of oil products from Azerbaijan decreased from year to year.

The export of oil products amounted to $78.28 million in January-March 2017, which is by 8.16 percent less than in January-March 2016.

Some 3 percent of the country’s total export volume accounted for the export of oil products as of 2017.

In January-March 2017 the export of gas from Azerbaijan increased by 4.2 times from year to year.

So, 468.2 million cubic meters of gas were exported abroad in January-March 2016. Up to 1,619.6 million cubic meters were exported in January-March 2017.

The share of gas in the total export was estimated at 10.22 percent.

An increase in the export of alcoholic and non-alcoholic beverages was observed in Azerbaijan, which was the result of state support for encouraging the best domestic producers to export their products, especially wines, under ‘Made in Azerbaijan’ brand to the foreign markets.

So, the country exported alcoholic and non-alcoholic beverages worth 5.72 million manat in January-March 2017, which is by twofold more than in January-March 2016.

The exports of aluminum and aluminum products also increased. In January-March 2017 aluminum was exported by 42.54 percent more than in January-March 2016. Some 1.14 percent of total export accounted for aluminum.

The volume of exports of fruits and vegetables which are the basis of agricultural exports of Azerbaijan continues to increase.

The exports of Azerbaijani agricultural products increased by 28.09 percent in January-March 2017 compared to January-March 2016.

Tomatoes and cucumbers, as well as walnuts and hazelnuts, cotton, tobacco are exported in large volumes from Azerbaijan.

Agrarian products were exported to Russia, as well as to other countries, for example, Ukraine and Kazakhstan.

The export of Azerbaijani chemical products has also increased since early 2017. So, export of chemical products increased by 84.9 percent and amounted to $9.54 million in January-March 2017 compared to January-March 2016. The share of chemical products was 0.37 percent in the total volume of export in January-March 2017.

The largest amount of export accounted for Italy in January-March 2017. Thus, during this period Azerbaijan exported goods totaling $538.68 million to Italy which makes up 20.67 percent of a total export volume. Oil and oil products are mainly exported to this country.

Turkey ($308.70 million) and Portugal $179.75 million) hold leading positions. Italy has maintained its leading position since 2008 excluding early three months. Turkey took a lead in January and U.S. in February and March 2008.

Italy and Azerbaijan have excellent bilateral and economic ties. Italy has remained the main trading partner of Azerbaijan, the fourth exporter and the first energy consumer for eight years.

As for other sectors, Italy is also represented well in the metallurgical sector of Azerbaijan. The recent agreement signed between Danieli and Baku Steel Company testifies to it. Italian products are valued in Azerbaijan and it concerns not only fashion, furniture, food but also the products in such sectors as mechanics, engineering and technology.

Russia ranks first on the largest import volume ($297.3 million) in January-March 2017. Some 19.65 percent of the Azerbaijani imports accounted for it. Turkey ranks second - $243.99 million and China - third ($148.66 million).

Most of Azerbaijan’s imports or 21.5 percent in the reporting period accounted for the import of machinery, mechanisms, equipment, electrical equipment and spare parts. The machinery and equipment worth $325.24 million were imported in January-March 2017, which is by 35 percent less than in January-March 2016. The import of ferrous metals consolidated its positions in the country’s foreign trade. The share of these products in a total import volume of the country reached 9.93 percent in January-March 2017, while this volume was 150.21 million manat in nominal terms or by 48.84 percent less than in January-March 2016.

Vehicles and spare parts worth $67.49 million (a share in total imports – 4.46 percent) were supplied to the country. The car imports decreased by 68.31 percent compared to January-March 2016. Some 1,431 vehicles (469 cars in January, 534 cars in February and 428 cars in March) were imported into the country in January-March 2017. Some 1,185 passenger cars (420, 432 and 333 accordingly), 195 trucks, 25 buses and 26 special vehicles were imported. Some 1,362 vehicles, including 1,235 passenger cars were imported in January-March 2016.

The import of butter, meat and dairy products greatly increased for the reporting period. In particular, the cost of imports of butter increased by 30.21 percent, meat – by more than twofold and milk - by 76.19 in January-March 2017 compared to January-March 2016.

Main products imported to Azerbaijan

source: Azerbaijani state customs committee

According to the Azerbaijani State Customs Committee, the countries-non-EU and CIS members formed the foreign trade turnover of Azerbaijan at 47.6 percent or by $1.959 billion, while the EU countries - at 37.8 percent ($1.558 billion). Some 14.6 percent or $0.602 billion accounted for the CIS.

The export of Azerbaijani goods to the EU countries amounted to $1.206 billion in January-March 2017, which is 46.34 percent of a total export volume amid 18.5 percent growth.

The import from EU by Azerbaijan decreased by 31.4 percent ($0.350 billion) and amounted to 23.15 percent of a total import volume. As a result, Azerbaijan had a black ink of trade balance with the EU at the level of $0.857 billion, which is slightly less than the country's total trade surplus ($1.094 billion).

The exports to the countries-non-EU and CIS members increased by twofold up to $1.223 billion in January-March 2017 or 46.92 percent of a total export volume, while imports decreased by 27.11 percent and reached $0.736 billion or 48.66 percent of the total import volume. As a result, the black ink worth $0.487 billion was observed in Azerbaijan’s trade relations with these countries.

The exports to the CIS countries for the reporting period totaled $0.176 billion (6.74 percent of the total export volume) by increasing by 1.51 times, and imports - $0.426 billion (28.19 percent) by increasing by 1.4 times. As a result, the country had a red ink worth $0.250 billion in trading with the CIS countries.

During this period, about 5,518 legal and physical entities were involved in foreign trade operations, including 3,224 - legal entities and 2,294 - physical entities.

The share of public sector in exports totaled $2.16 billion, private sector –$409.6 million, the share of physical entities - $33.2 million.

The share of public sector in import operations amounted to $144.89 million, the private sector – almost $1.3 billion, physical entities –almost $88.9 million.

Azerbaijan’s trade operations with foreign countries in January-March 2017

source: Azerbaijani state customs committee