Finance

Finance

Azerbaijan sees decline in positive balance of BoP

12 September 2013 14:20 (UTC +04:00)

Baku. Vahab Rzayev – APA-Economics. During the first half of 2013, positive balance of Azerbaijan’s BoP (balance of Payment) made $2,3191.4 mln, down 1.7 times from 2012.

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-June, 2013 made $ 11.3 bln. During the reporting period, surplus on current accounts made $ 6.4 bln. Surplus of oil-gas sector has completely covered $4.7 bln-deficit of current account on non-oil sector.

BoP man indexes

(mln. dollar)

January-June

2012

January-June

2013

I. Balance of

current operations 8,162.1 6,443.6

Foreign trade balance 12,403.5 10,483.7

Services balance - 1,769.5 - 2,044.6

Incomes balance - 2,352.0 - 1,997.4

- Repatriation of investment incomes - 2,443.7 - 2,033.7

Current transfers balance - 119.9 6.0

II. Balance of circulation of

capital and finance - 4 238,0 - 3,278.9

- Involved in Azerbaijan 2 496,1 2,966.1

- Directed to abroad - 689,6 - 445.0

- Repatriation of investments - 1 562,0 - 1,711.5

Credits and others investments - 4 484,5 - 5,024.0

III. BoP total balance 3,924.1 2,319,4

Foreign trade turnover made $21.2 bln and as it seems foreign trade balance resulted in positive balance of $10.5 bln. During this period, Azerbaijan had trade links with 137 countries. 9.8% of foreign trade was consumed with CIS countries, 90.2% - with other foreign countries.

According to BoP, export of goods made $15.9 bln, down 7.6% from previous year. Share of oil-gas products in this structure made 94.3%. $14.2 bln-oil products were exported to foreign countries. Of this, $ 0.9 bln was oil processing products, $13.3bln – crude oil. $12.6 bln of crude oil exported is total worth of oil extracted by Azerbaijan International Operation Company. $0.7 bln of crude oil exported was sent by other enterprises. Of this, $81.9 mln fell to share of condensate fell to share of Shahdeniz, $625.6 mln – to SOCAR.

Note that during the first half of 2013, Azerbaijan’s non-oil export soared 13.4% to $902.8 mln.

(mln. dollar)

Export
	January-June, 2012	January-June, 2013
Fuel and crude materials	16,527.2	15,223.6
- oil-gas products	16,205.1	14,957.3
- other materials	322.1	266.3
Machine and equipment	47.2	171.8
Consumption goods	406.2	450.0
Other goods	20.3	14.7
Total	17,000.9	15,860.1

As it seems, the decline occurred from reduction of oil-gas products. So, the decline on oil-gas products made $1,247.8 mln, while total export decline stood at $1,140.8 mln.

Total worth of import of goods to Azerbaijan made $5.4 bln, up 12.5% from previous year. Consumption goods import amounted to $2,387.2 mln, which $619.8 mln of this fell to share of food products.

(mln. dollar)

Import
	January-June, 2012	January-June, 2013
Consumption goods	2,028.8	2,387.2
- Food products	607.1	619.6
- Non-food products	1,421.7	1,767.6
Investment goods	444.1	519.4
Other goods	2,146.5	2,469.7
Total	4,619.4	5,376.3

As it seems, consumption goods import mainly increased through non-food products. So, total growth on consumption goods import made $756.9, non-food products - $345.9 mln. Food products dropped $12.5 mln.