Finance

Finance

Azerbaijan sees 27% decline in positive balance of BoP

11 December 2013 15:29 (UTC +04:00)

Central Bank of Azerbaijan says as previous year’s indicators, foreign economic operations had positive balance on oil and gas sector, negative balance on non-oil sector. The payments on this sector reflects repatriation of profit and investments, import if equipments and services.

Consequently, total positive balance on oil-gas sector in January-September, 2013 made $ 17.1 bln. During the reporting period, surplus on current operations made $ 9.3 bln, as well as surplus of curren operations on oil and gas sector stood at $ 16.6 bln. Surplus of oil-gas sector has completely covered $7.4 bln-deficit of current account on non-oil sector.

BoP man indexes (mln. dollar)

2012,

January-September

2013,

January-September

I. Balance of

current operations 11,518.2 9,249.9

Foreign trade balance 17,506.0 15,408.1

Services balance - 2,377.4 - 3,151.0

Incomes balance - 3,431.5 - 3,052.0

- Repatriation of investment incomes - 3,655.0 - 3,097.7

Current transfers balance - 178.9 51.4

II. Balance of circulation of

capital and finance - 7,039.9 - 5,054.6

- Investments directly

involved in Azerbaijan 3,972.7 4,631.8

- Investments directed to abroad - 926.1 - 775.0

- Repatriation of investments - 2,176.1 - 2,663.2

Credits and others investments - 7,912.4 - 7,739.4

III. BoP total balance 4,478.3 3,291,1

Foreign trade turnover made $32.2 bln and as it seems foreign trade balance resulted in positive balance of $15.4 bln. During this period, Azerbaijan had trade links with 143 countries. 9.5% of foreign trade was consumed with CIS countries, 90.5% - with other foreign countries.

According to BoP, export of goods made $23.8 bln, down 3.1% from previous year. Share of oil-gas products in this structure made 94.7%. $21.5 bln-oil products were exported to foreign countries. Of this, $ 1.2 bln was oil processing products, $20.3 bln – crude oil. $19.1 bln of crude oil exported is total worth of oil extracted by Azerbaijan International Operation Company. $1.2 bln of crude oil exported was sent by other enterprises. Of this, $120.8 mln fell to share of condensate of Shahdeniz, $1,015.5 mln – to SOCAR.

Note that in the January-September of 2013, Azerbaijan’s non-oil export soared 13.1% to $1,265.5 mln.

(mln. dollar)

Export
	2012, 9 months	2013, 9 months
Fuel and crude materials	23,882.5	22,923.0
- oil-gas products	23,442.5	22,545.1
- other materials	440.0	377.9
Machine and equipment	60.6	214.7
Consumption goods	596.2	651.3
Other goods	22.3	21.6
Total	24,561.6	23,810.6

As it seems, the decline occurred from decrease of export of oil and gas products. Thus, decline of total export made $751.0 mln, while decline on oil and gas products stood at $ 959.5 mln.

During the reporting period, total worth of visible import made $ 8.4 bln, up 18.6% in annual comparison. Total worth of import of the consumer goods stood at $ 3,292.1 mln, which $ 1,025.5 mln fell to share of food products.

(mln. dollar)

Import
	2012, 9 months	2013, 9 months
Consumption goods	3,067.6	3,292.1
- food producs	873.0	1,025.5
- Non-food products	2,194.6	2,266.6
Investment goods	696.1	741.7
Other goods	3,321.9	4,368.7
Total	7,085.6	8,402.5

As it seems, consumption goods import mainly increased through food products. Thus, total growth on consumption goods import made $224.5, non-food products - $72.0 mln. Food products also rose $152.5 mln.