Export income has doubled – But at what expense? |
State customs Committee During the first 6 months of 2022 Azerbaijan announced foreign trade indicators. According to the published indicators, in the first half of the year Azerbaijan 18 in total billion 479 million dollars exported worth. Recall that in the corresponding period of last year Azerbaijan export 8 billion It was equal to 811 million dollars. This means that in the last year Azerbaijan its export revenue has more than doubled.
During the first 6 months of 2022, the import of Azerbaijan is 6 billion 357 million dollars was in volume. This is about 1 billion compared to the same period last year dollars means growth. The fact that the growth rate of exports is ahead of the growth rate of imports has also led to the growth of the trade balance. Thus, the trade balance, which was equal to positive 3 billion 420 million dollars in the first half of last year, increased to 12 billion 122 million dollars this year. During this year Azerbaijan has established trade relations with 165 countries in total.
Although Azerbaijan’s trade indicators improved significantly compared to last year, there was no significant change in the structure of exports. The noted growth has traditionally occurred at the expense of energy resources. Since the beginning of this year, the sharp increase in the price of energy carriers in the world markets has led to a sharp increase in the revenues of Azerbaijan. Recall that at the beginning of the year, the price of one barrel of oil was calculated at 50 dollars in the budget. Later, the government saw that prices were higher and raised this figure to $85. But it’s been a long time since Azerbaijan the price of oil 10It doesn’t go below $0.
State Customs Committee according to the figures during the first 6 months of this year, oil-gas sector’s share was equal to 92.11 percent. In other words, everything the country gets from foreign trade 1092 out of 0 dollars is oil.gas related to the sector. Last year, this indicator was 5 percent less, close to 87 percent. That is, although the government has been talking about the development of the non-oil sector in recent years, compared to last year, the oil-gas The share of oil sector in exports has increased more than that of the non-oil sector. The fact that energy resources occupy such a large place in the country’s exports has led to high indicators for the economy of Azerbaijan, as well as high risks. The total export of non-oil exports of the country 10 occupying less than 1% means that the country’s economy will face serious problems, while the oil and gas prices will drop sharply.
Regarding the oil and gas sector of Azerbaijan, a point different from previous years is related to the approach of gas revenues to oil revenues. In the first 6 months of this year, Azerbaijan received a total of 17 billion dollars from the sale of oil and gas. Of this, 9 billion 361 million dollars (55 percent) went to oil exports, and 7 billion 440 million dollars (45 percent) to natural gas exports. For comparison, let’s note that gas revenues are the total of last year’s oil and gas revenues 20 had a percentage share.
Regarding the oil and gas sector of Azerbaijan, a point different from previous years is related to the approach of gas revenues to oil revenues. In the first 6 months of this year, Azerbaijan received a total of 17 billion dollars from the sale of oil and gas. Of this, 9 billion 361 million dollars (55 percent) went to oil exports, and 7 billion 440 million dollars (45 percent) to natural gas exports. For comparison, let’s note that gas revenues are the total of last year’s oil and gas revenues 20 had a percentage share.
State Customs Committee Another noteworthy point in the figures announced is related to the sharp increase in state sector imports compared to last year. Thus, during the first 6 months of 2021, the public sector imported a total of 440 million dollars. This meant 8 percent of total imports. This year, in the first half of the year, the volume of imports carried out by the state sector has more than doubled. In 2022, the import volume of the public sector increased to 1 billion 24 million dollars. Thus, the share of the state sector in imports increased to 16 percent. The import volume of the private sector was 4 billion 735 million dollars. This means three quarters of total imports. About 600 million dollars – about 10 percent – of the import fell on the share of individuals.
A change in the geographical structure of imports is also noticeable in 2021. This change is related to the increase in the share of CIS countries in imports. If in 2021, 24 percent of Azerbaijan’s total imports came from the CIS countries, in 2021 this figure increased by 5 percent to 29 percent. Europe Union’s share in imports during that period 20 percent to 16 percent. Looking at importing countries, it is clear that the share of only three countries in Azerbaijan’s imports is more than 10 percent – Russia (18.60), Turkey (16.56) and China (14.83).
The opposite trend has occurred in the country’s exports. I mean, Europe Union’s share has increased. On the contrary, the share of CIS countries in exports decreased. 62 percent of Azerbaijan’s total exports during the first 6 months of 2022 Europe It fell to the share of the Union. This is due to the fact that the main buyer of the country’s energy resources is Western countries. In 2021, that indicator was equal to 51 percent. The share of CIS countries in exports decreased from 9 percent to 5 percent within a year.
In 2022, machinery and equipment took the main place in the import of Azerbaijan. 1 billion 276 million dollars for the import of this equipment in the country in the first 6 months funds spent. This made up 20 percent of all imports of Azerbaijan. The second major direction in imports food and related to food products. During the first 6 months of the year To Azerbaijan imported food the value of its products was 1 billion 57 million dollars. This means 16 percent of total imports. Imported to the country 1 year ago food the volume of products increased by more than 100 million dollars. Most of the imports funds food products spent wheat ($143 million), oils ($138 million) and fruit– vegetables ($132 million).
The third direction that took the most place in the import was vehicles. In the first 6 months of this year, 782 million dollars worth of vehicles and their spare parts were imported to the country. The noteworthy point here is that although the number of cars imported to the country has decreased, the total value has increased. So, in the first 6 months of 2021 To Azerbaijan 39,643 vehicles were imported. This year, that number was 35 thousand 173. Despite this reduction, paid for imported cars funds It increased from 398 million dollars to 461 million dollars.