Non-oil GDP up 2.4% y/y in 3M17
Azerbaijan’s non-oil GDP was up 2.4% y/y in 3M17, supported by growth in agriculture (+3.5% y/y), transportation and storage (+3.2% y/y), trade (+1.6% y/y), and construction (+4.7% y/y) sectors. However, with oil GDP down 6.8% y/y, overall GDP contracted 0.9% y/y in 3M17.
Nominal GDP in AZN terms was up 28.0% y/y to AZN 15.2bn, while in US$ terms it was up 13.7% y/y to US$ 8.5bn.

Inflation rate at 14.4% y/y in March 2017
Annual CPI inflation rate increased from 13.0% in the previous month to 14.4% in March 2017. In March, food prices were up 19.9% y/y (+3.3ppts m/m), non-food prices were up 12.8% y/y (+0.1ppts m/m), and service sector prices were up 8.8% y/y (+0.0ppts m/m).

Azerbaijan’s gross FX reserves at 100.2% of GDP
State Oil Fund’s (SOFAZ) revenues in 1Q17 were at AZN 3.3bn (+61.8% y/y) while expenditures were at AZN 3.8bn (+97.6% y/y), resulting in AZN 0.6bn deficit compared to AZN 0.1bn surplus in 1Q16. Expenditures were driven by a new spending item “Transfers to the Central Bank to support macroeconomic stability” which amounted to AZN 2.3bn, transfers to the state budget amounted to AZN 1.5bn (-8.1% y/y) while Fund’s direct expenditures were at AZN 43.5mn (-88.0% y/y). As a result of the deficit, SOFAZ reserves declined 3.0% y/y to US$33.2bn.
Together with CBAR reserves, Azerbaijan’s gross FX reserves were at US$ 37.6bn or 100.2% of annual GDP in 2016.

Oil extraction down in 1Q17
Crude oil extraction in Azerbaijan was down 9.9% to 9.5mn tons in 1Q17, gross natural gas extraction was down 6.8% y/y to 7.0bcm. However, according to the Statistical Committee, commercially available natural gas extraction (gross minus re-injected gas) was up 0.9% y/y to 4.8bcm in 1Q17.

Tax receipts up in March 2017
According to the Ministry of Taxes, tax receipts in 1Q17 were at AZN 1.4bn, 3.8% higher than budgeted, albeit, 7.9% less than in 1Q16. In March 2017 tax receipts of the Ministry of Taxes were up 9.2% y/y to AZN 0.5bn. 
Customs Committee tax receipts, however, were up 37.0% y/y to AZN 0.6bn in 1Q17. In March 2017, Customs Committee receipts were up 16.4% y/y to AZN 0.2bn.