Azerbaijan economy contracted 3.0% y/y in 7M16
In 7M16, real GDP declined 3.0% y/y, less than the 3.4% y/y contraction recorded in 1H16. Non-oil GDP was down 5.4% y/y, compared to a 6.1% y/y decline in 1H16, while oil GDP was up 2.0% y/y. The main drag on growth continued to be construction sector,which was down 30.7% y/y in 7M16. Excluding the construction sector, non-oil GDP was almost flat, indicating relative improvement compared to the 1.4% y/y contraction in 4M16.
Trade balance in surplus in July 2016
According to the Customs Committee of Azerbaijan, in July 2016 exports were down 38.1% y/y to US$ 768.3mn, while imports were up 16.8% y/y to US$ 710.0mn, resulting in a US$ 58.4mn surplus
In 7M16, however, trade balance was negative at US$ 167.5mn, as exports were down 38.6% y/y, and imports were down 10.5% y/y. Customs Committee export figures exclude non-declared oil exports which are included in Statistics Committee exports figures. According to the Statistics Committee, trade balance posted US$ 2.2bn surplus in 1H16, down 50.3% y/y.
Non-mineral exports were down 28.0% y/y in July 2016 and down 33.2% y/y in 7M16. The decline in July was driven by a 69.8% y/y fall in exports of foodstuff and a 47.5% y/y fall in exports of vegetable products. Positive contribution to exports came from a 62.9% y/y increase in metal exports and a 162.5% y/y increase in plastics exports. The growth in imports in July 2016 was driven by increases in imports of machinery (+14.8% y/y), textiles (+235.5% y/y) and vegetables (+50.1% y/y).
