Azerbaijan Reports Robust Foreign Trade Surplus in January 2024

Azerbaijan's foreign trade surplus for January 2024 reached an impressive $701.86 million, marking a substantial increase of 51.2% compared to the corresponding period last year, as per the latest report from the State Customs Committee (SCC).

Despite a marginal decline of 9.2% in overall foreign trade turnover, which amounted to $2.99 billion, the country showcased resilience driven by notable shifts in export and import dynamics. Export figures totaled $1.84 billion, experiencing a modest decline of 1.8%, while imports declined significantly by 19.2% to $1.14 billion.

The structure of exports remained largely dominated by the oil and gas sector, accounting for a staggering 87.96% of total export volume. This underscores Azerbaijan's continued reliance on its hydrocarbon resources as a primary driver of export revenue.

In contrast, the composition of imports showcased a diverse array of categories. Notable sectors included machines, mechanisms, electrical appliances, equipment, and spare parts (20.25%), vehicles and spare parts (14.85%), and ferrous metals and products (7.84%).

The report highlighted the extensive participation of both state and private enterprises, with 4,371 thousand enterprises and 6,228 thousand individuals engaged in foreign trade operations during the reporting period. Additionally, Azerbaijan conducted trade with 131 countries, demonstrating the country's broad global reach.

Key export partners for Azerbaijan in January 2024 included Italy (25.53%), Turkey (16.54%), Israel (16.22%), and Thailand (6.25%), among others. Meanwhile, leading import partners comprised China (19.07%), Russia (16.57%), and Turkey (14.93%), reflecting the country's diversified trade relationships.

Azerbaijan's foreign trade surplus in 2023 stood at $16.61 billion, marking a decline of 29.6% compared to 2022. While this decrease may raise concerns, the substantial surplus in January 2024 suggests a potential reversal or stabilization of this trend, providing a positive outlook for Azerbaijan's trade performance in the coming months.