SOFAZ reserves up 2.0% q/q to US$ 34.2bn
Helped by manat devaluation, Azerbaijan State Oil Fund revenues reached AZN 2.0bn (-0.2% y/y) in 1Q16, while expenditures were down to AZN 1.9bn (-16.7% y/y), resulting in a minor surplus of AZN 76.4mn, compared to an AZN 307.6mn deficit in 1Q15. Due to the surplus and revaluation of assets, reserves increased 2.0% q/q to US$ 34.2bn.
Non-oil fiscal balance down to 14.9% of non-oil GDP
In 1Q16 Azerbaijan’s consolidated budget non-oil revenues increased 18.0% y/y, while total expenditures decreased 32.6% y/y, resulting in AZN 1.2bn non-oil deficit (-61.2% y/y). As a ratio to non-oil GDP, deficit was down from 41.4% in 1Q15 to 14.9% in 1Q16.
Trade deficit at recent highs
With mineral and non-mineral exports down 47.4% y/y and 43.2% y/y, respectively, total exports decreased 46.9% to US$ 557.2mn in March 2016. Imports, on the other hand, increased 17.9% y/y to US$ 851.7mn, resulting in a US$ 294.6mn trade deficit, probably the highest since early 2000s.
The growth in imports was mainly driven by one-off imports of “ships, boats and floating structure,” related to the oil and gas sector, which accounted for 71.5% of the growth.
Oil and gas production at highest level over the last 12 months
Azerbaijan produced 3.6mn tons of oil and 2.6 bcm of natural gas in March 2016, the highest monthly figure over the last 12 months, albeit 1.9% and 0.2% lower than in March 2015.
