Foreign trade of Azerbaijan (January-August 2016)

The foreign trade turnover with 173 world countries amounted to $11.33 billion in January-August 2016, or 24.96 percent less than in January-August 2015. The volume of exports decreased by 37 percent and amounted to $5.79 billion compared to January-August 2015. The volume of import decreased by 6.23 percent and amounted to $5.5 billion.

Azerbaijan exported 2,380 goods and imported 6,860 different goods. The reporting period of 2016 ended with a black ink of $250.3 million, while a surplus of $2.28 billion was recorded as of August 2015.

As in previous periods, oil, gas and oil products were mainly exported from Azerbaijan in January-August 2016.

Main products exported from Azerbaijan

Source: Azerbaijani state customs committee

Most of Azerbaijan’s exports as of January-August 2016 (71.93 percent) accounted for the export of crude oil. During the reporting period, the country exported oil worth $4.16 billion. The cost of crude oil exports decreased by 34.87 percent compared to January-August 2015. This is connected with a decrease in the global oil prices. Currently, SOCAR supplies oil from Azerbaijan to more than 30 countries in Europe, Asia and America.

According to the Azerbaijani State Customs Committee, in January-August 2016 the export of oil products from Azerbaijan decreased from year to year.

The export of oil products amounted to $236.43 million in January-August.

Some 4.08 percent of the country’s total export volume accounted for the export of oil products in January-August 2016.

In January-August 2016 the export of gas from Azerbaijan decreased by 45.77 percent in physical terms from year to year.

The share of gas in the total export was estimated at 10.93 percent in January-August 2016.

The threefold growth was observed in exports of ferrous metals in January-August. The export of ferrous metals increased by more than threefold up to $59.82 million or 1.03 percent of total exports in January-August 2016.

The volume of exports of fruits and vegetables which are the basis of agricultural exports of Azerbaijan greatly increased. The exports of agricultural products in Azerbaijan increased by 31.92 percent in January-August 2016 compared to January-August 2015. The agricultural products are mainly supplied to the Russian markets. The logistics centers are being built in Azerbaijan and outside the country for storage, transportation, export and sale of agricultural products.

The largest amount of export accounted for Italy in January-August 2016. Thus, during this period Azerbaijan exported goods totaling $1.042 billion to Italy which makes up 18.01 percent of a total export volume. Oil and oil products are mainly exported to this country.

Turkey ($726.66 million) and Taiwan $467.18 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.

Russia ranks first on the largest import volume ($967.77 million) in January-August 2016. Some 17.47 percent of the Azerbaijani imports accounted for it. Turkey ranks second - $732.35 million and China - third ($423.97 million).

Most of Azerbaijan’s imports or 23.47 percent in the reporting period accounted for the import of machinery, mechanisms, equipment, electrical equipment and spare parts. The machinery and equipment worth $1.3 billion were imported in January-August 2016, which is by 2.23 percent less than in January-August 2015.

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 14.54 percent in January-August 2016, while this volume was 805.57 million manat in nominal terms or by 19.91 percent less than in January-August 2015.

Vehicles and spare parts worth $570.6 million (a share in total imports – 10.3 percent) were supplied to the country. The car imports decreased by 44.44 percent compared to January-August 2015.

According to the State Customs Committee, in January-August 2016, the import of cars decreased by 6.1 times year on year. Some 3,454 vehicles were imported into the country in January-August 2016. Some 2,981 passenger cars, 342 trucks, 54 buses and 77 special vehicles were imported. Some 575 vehicles, including 506 passenger cars were imported in August. For comparison, some 21,147 vehicles, including 18,821 passenger cars were imported in January-August 2015.

The import of meat and dairy products greatly increased for the reporting period, which points to a lack of domestic production of these products.

In particular, the value of imports of meat increased by 70.12 percent, oil - by 133.56 percent and milk - by 34.85 percent compared to the same period of 2015.

Main products imported to Azerbaijan

source: Azerbaijani state customs committee

According to the Azerbaijani State Customs Committee, the countries-non-EU and CIS members kept their status as the main trading partners of the country in January-August. These countries formed the foreign trade turnover of Azerbaijan by 48.2 percent or $5.462 billion, while the EU countries - by 36.94 percent ($4.186 billion). Only 14.86 percent or $1.683 billion accounted for the CIS.

Azerbaijan’s exports to the EU countries amounted to $2.635 billion in January-August, or 45.5 percent of a total export volume amid a 46.29 percent decrease. Imports from EU ($1.551 billion) decreased by 11.43 percent and amounted to 28 percent of a total import volume. As a result, the country had a black ink of trade balance with the EU at the level of $1.084 billion compared to the country's total trade deficit - $0.250 billion.

The exports to the countries-non-EU and CIS members dropped by 30.39 percent - to $2.768 billion in January-August or 47.8 percent of a total export volume, while imports - by 5.04 percent and reached $2.694 billion or 48.63 percent of the total import volume. As a result, the deficit worth $0.074 billion was observed in Azerbaijan’s trade relations with these countries.

The exports to the CIS countries for the period totaled $0.388 billion (6.7 percent of the total export volume) by increasing by 1.26 times and imports - $1.295 billion (23.37 percent) by decreasing by 1.87 percent. As a result, the country had a red ink in trading with them to the amount of $0.907 billion.

Some 173 countries are foreign trade partners of Azerbaijan for eight months of 2016.

During this period, about 10,658 legal and physical entities were involved in foreign trade operations, including 4,566 - legal entities and 6,092 - physical entities.

The share of public sector in exports totaled $4.6 billion, private sector – almost $1.1 billion, the share of physical entities - $139.7 million.

The share of public sector in import operations amounted to $828.6 million, the private sector – almost $4.4 billion, physical entities -$312.38 million.

Azerbaijan’s trade operations with foreign countries in Jan.-Aug. 2016

source: Azerbaijani state customs committee