Azerbaijan economy contracted 4.5% y/y in 4M16
In 4M16, real GDP fell 4.5% y/y, with non-oil GDP down 6.8% y/y and oil GDP flat. The contraction was driven by a strong decline in construction (-35.5% y/y) and transport and storage (-14.2% y/y), while positive contribution to growth came from trade (+2.7% y/y), information and communication (+11.0% y/y), mining (+0.5% y/y), manufacturing (+2.6% y/y), agriculture (+3.5% y/y), and tourism (+3.5% y/y). Excluding construction, non-oil GDP contracted 1.4% y/y in 4M16.
In nominal terms, GDP in 4M16 increased 5.9% y/y to AZN 16.9bn, while in US$ terms, output decreased 36.9% y/y to US$ 10.8bn.
Investments down 13.5% y/y in April 2016
Investments in April 2016 declined 13.5% y/y to AZN 1.4bn (-40.1% y/y to US$ 0.9bn), with domestic investments driving the decline. Foreign investments increased 60.5% y/y and were mainly directed to the oil sector, as investments in the oil sector were up 39.3% y/y while non-oil investments declined 41.8% y/y.
Total investments were down 11.9% y/y to AZN 4.3bn (-46.0% y/y to US$ 2.7bn) in 4M16.
Oil and gas extraction down
According to SOCAR, oil and natural gas extraction in Azerbaijan was down 2.2% y/y and 0.3% y/y, respectively, in April 2016 (-1.7% y/y and -0.8% y/y, respectively, in 4M16). The drop in SOCAR’s output was the main drag on oil and gas production in April 2016.
