Azerbaijan: Fall of Mining and Oil Revenues to Continue in 2015

The Center for Social and Economic Development (CESD) published a report "Azerbaijan's oil exports in 2014: An Overview", which is forecast to continue to reduce the rate of oil production in 2014.

2014 was marked by a sudden decline in oil prices in the world market. As an oil exporter country, Azerbaijan started feeling effects of a sharp fall in oil revenue after oil price decline in the world market owing to decline of the country’s oil income. 

In spite of the fact that Azerbaijan was able to reduce share of oil industry both in public revenues and in the country’s Gross Domestic Product (GDP), Azerbaijan is still heavily dependent on oil and natural gas export revenues. 

Azerbaijan’s trade turnover was $ 36.7 billion US in the first eleven months of 2014. Volume of export was $ 28.6 billion US, volume of import was $ 8.1 billion dollars and surplus was $ 20.5 billion US in the indicated period. 

Export of non-oil products formed $ 1.6 billion US. Export of non-oil products on per capita was equal to $ 166.8 US. 

According to the CESD calculations, foreign trade in the first eleven of 2014 declined by 7.6 % compared to previous year. The foreign trade turnover was $ 39.7 billion US in the first eleven months of 2013.  Share of oil and oil products on total export was 95.7 % in the first eleven months of 2014.

The country produced 41.9 million tons oil in 2014.  The oil output declined by 3.7 % in 2014 compared with 2013 since oil production was 43.5 million tons previous year. This show that decline tendency in oil output continued in 2014 and based on exiting forecasts the decline will continue this year, too.

Full report is available at www.cesd.az.    –0----