Expert: ‘Analysis of Azerbaijan`s Balance of Payments Shows Deteriorating Situation’

Azerbaijan's balance of payments deficit amounted to 1.8 billion dollars for the first half of 2016, whereas in the past year for the same period a surplus of $ 99 million was recorded, the economist Samir Aliyev said.

According to Turan, in the first quarter the deficit was 1.1 billion dollars.

The expert noted that the results of H1 revealed several trends. Among those he called the increase in current account deficit, which has always been the sole source, creating a surplus of the balance of payments.

‘In connection with the fall in oil prices and the reduction of non-oil exports in the second quarter of this year, the deficit in current accounts reached 802 million dollars. In other words, we returned to foreign countries 802 million dollars more than was imported into the country. Last year, this indicator recorded a surplus of 63.3 million dollars.

As another reason Aliyev called a decrease in exports of non-oil products, which in comparison with the first 6 months of last year fell by 34% - from $ 827.1 million to $ 544.9 million.

At the same time Aliyev noted the reduced deficit in tourism and construction.

‘Despite the fact that the flow of Arab tourists to our country increased and the Formula 1 competitions were con ducted in Baku, contributing to the tourism industry, it did not help completely cover the deficit in this sector. Payment by foreigners for travel services in comparison with the same period last year increased from $ 1.10 billion to $ 1.19 billion. The deficit in this area decreased from $ 32 million to $ 11.4 million. In the construction sector the deficit for this period decreased from $ 1.9 billion to $ 1.5 billion.

In general, in his opinion, the analysis of the country's balance of payments shows a deteriorating situation. -71B-