Azerbaijan economy up 0.8% y/y in 1M17
In 1M17, real GDP increased 0.8% y/y, compared to the 3.3% y/y contraction recorded in 1M16. Non-oil GDP was up 1.5% y/y, compared to the 3.7% y/y decline in 1M16, while oil GDP was down 0.5% y/y. The main drag on growth continued to be the construction sector, down 6.4% y/y in 1M17. Excluding the construction sector, non-oil GDP was up 2.3% y/y in 1M17.
Inflation rate at 11.9% y/y in January 2017
Annual CPI inflation rate retreated from 15.5% in the previous month to 11.9% in January 2017. In January, food prices were up 14.5% y/y (-6.5ppts m/m), non-food prices were up 12.3% y/y (-4.0ppts m/m), and service sector prices were up 8.0% y/y (+0.0ppts m/m).
Non-mineral fuel exports up 46.7% y/y in January 2017
According to preliminary data for January 2017 from the Customs Committee, non-mineral fuel (N-MF) exports were up 46.7% y/y to US$ 83.7mn while total imports were up 3.6% y/y to US$ 450.1mn.
Growth in N-MF exports in January 2017 was driven by exports of vegetables (+45.2% y/y), textiles (+203.0% y/y), plastics (+67.6% y/y) and metals (+29.6% y/y), while lower exports of stone/glass (-21.5% y/y) exerted downward pressure. Imports growth in January 2017 were driven by mineral fuels (+305.5% y/y), foodstuffs (+63.6% y/y), and textiles imports (+213.8% y/y), while imports of machinery (-30.9% y/y) and metals (-37.2% y/y) were down.
SOFAZ reserves down 1.3% y/y in 2016 to US$ 33.1bn
In 2016 State Oil Fund of Azerbaijan Republic (SOFAZ) posted AZN 0.4bn budget surplus, thanks to 21.9% y/y increase in its revenue and 1.8% y/y decline in expenditures in AZN terms. In US$ terms, however, revenues were down 21.8% y/y to US$ 5.9bn while expenditures were down 37.0% y/y to US$ 5.6bn resulting in US$ 0.2bn surplus. However, SOFAZ reserves were down 1.3% y/y in 2016 to US$ 33.1bn due to depreciation of some currencies against US$ in which SOFAZ holds investments.
