July Issue of the Export Review Presented
During the first half of the year, the export of Azerbaijan amounted to 8.8 billion US dollars, including non-oil export equal to 1.2 billion US dollars. The non-oil export increased by 248 million US dollars or 27.1 percent compared to the same period in 2020. Though the key export driver in the current period was the oil sector, the share of non-oil export during recovery has increased up to 13.2 percent. In the reviewed period, there was an increase in non-oil and gas exports per capita. Thus, this indicator in the non-oil and gas sector was 82 dollars in the first half of 2017, 94 dollars in 2018, and 97 in 2019. Although due to the pandemic, it decreases to 91 dollars, in the first half of this year it has raised to its highest point – 116 dollars.
In the period of normalization, in June, the foreign trade volume amounted to 2.4 billion US dollars, while exports amounted to 1.4 billion US dollars and imports - 997.1 million US dollars. The growth in the non-oil sector was 33.7% and reached 254.9 million US dollars. Another significant moment is that in June, the share of non-oil exports in total exports was close to 20%. There is also a coverage ratio of export and import, which is 1.4 points, or 140%. However, last year, due to the pandemic, this figure was 86.7%. The export-import coverage ratio indicates how much imports are met by exports. It should be noted, that this ratio is 47.5% in Georgia and 40% in Armenia.
In January-June 2021, tomatoes (123.6 million US dollars) took first place among exported products of the non-oil sector. Raw cotton (121.9 million US dollars) and gold (107.9 million US dollars) shared second and third places.
In January-June 2021, the value of non-oil products exported to Russia amounted to 403.8 million US dollars, Turkey – 309.5 million US dollars, Switzerland – 117.6 million US dollars, Georgia – 80.2 million US dollars, and to the USA – 30.3 million US dollars.
In June 2021, Russia (124.4 million US dollars) topped the list of countries where the largest part of non-oil goods are exported. Turkey was second (54.5 million US dollars) and Switzerland was third (26.5 million US dollars).
In June 2021, tomatoes (36.6 million US dollars) took first place among exported products of the non-oil sector. Cherries (29.3 million US dollars) and gold (20.5 million US dollars) shared second and third places.
The Export Review provided a rating of exporting governmental and non-governmental organizations, engaged in the non-oil export, for January-June 2021.
The top ten companies in the ranking of non-governmental exporters in January-June 2021 are the following: MKT Industrial Commerce LLC, Representation of Azerbaijan International Mining Company Limited in the Republic of Azerbaijan, Local Garden LLC, P-Agro LLC, Baku Steel Company LLC, Sun Food LLC, Azerbaijan Sugar Production Association LLC, Ram International Transportation and Trade LLC, Fruitland LLC, and Agro-Land-Az CJSC.
The list of state-owned companies involved in export operations in the non-oil sector is headed by the SOCAR Marketing and Economic Operations Department. Next on this list are SOCAR Polymer LLC, Azergold CJSC, Azeraluminium LLC, Azercotton Agricultural and Industrial Complex LLC, Azerenergy OJSC, Azerbaijan Railways CJSC, Azeripek LLC, Caspian Geo LLC, and State Energy Services of Nachkchivan AR.
In June 2021, the volume of transactions carried out through bank cards of foreigners in our country amounted to 48.3 million manats.
In January-June 2021, Azercosmos OJSC exported services (satellite telecommunication and optical services) worth 22 million US dollars to 31 countries of the world. Profit earned from the export of services amounted to 90 percent of the total profit of Azercosmos OJSC. In June 2021, Azercosmos OJSC exported services worth 2.6 million US dollars to 24 countries of the world.
In January-June 2021, the Azexport.az portal received export orders that amounted to 236.6 million US dollars. In June 2021, the number of export orders submitted to the Azexport.az portal was 42.3 million US dollars. In June 2021, the list of most ordered goods included chicken, chicken eggs, tea, cotton, tobacco, sunflower seed oil, etc. It should be noted that from January 2017 to June 30, 2021, the number of export orders submitted to the Azexport.az portal from 145 countries of the world was 2 billion 432 million US dollars.
At the same time, according to the Export Review, during July 2021, the total cost of the non-oil export implemented through the One-Stop-Shop Export Support Center was 20 million US dollars. From 2017 to July 2021, the total amount of goods and products exported through the One-Stop-Shop Export Support Center was 595 million US dollars.
The Export Review can be found in the Review section of the website ereforms.gov.az.
Op-eds
Agil Asadov
Head of the Strategic planning division
Moody's: Growing influence of the Middle Corridor boosts economic prospects
Ayaz Museyibov
Deputy Executive Director of the CAERC
Azerbaijan and Türkiye: Leading through unity in global crises
Ayaz Museyibov
Deputy Executive Director of the CAERC
Türkiye-Kyrgyzstan partnership fuels Middle Corridor's rise
Shabnam Mammadli
Sector director of the Monitoring of socio-economic programs
The liquidation of "Azalternativenerji" LLC will serve to reduce the demand and risks for state resources
Tarana Salifova
Head of the Monitoring and evaluation division
The change made in the strategy of socio-economic development for 2022-2026 will stimulate high economic growth
Vusal Gasimli
Executive director of CAERC
The equilibrium real exchange rate in a commodity exporting country: Azerbaijan's experience
Gunay Guliyeva
Head of department at CAERC
Educational Loans Will Accelerate Economic Development