Azerbaijan increases non-oil exports by 2.5 percent in January 2020

By Azernews

By Ofeliya Afandiyeva

Azerbaijan’s exports of non-oil products in January 2020 increased by 2.5 percent in actual prices compared to January 2019, and in real terms fell by 5.8 percent to $140.8 million, local media reported on March 17.

According to the Azerbaijani State Statistics Committee’s data, 53.6 percent of exports fell on Italy, 8.5 percent - Israel, 5.8 percent - Turkey, 4.4 percent - Tunisia, 4.0 percent - Ukraine, 3.1 percent – the Czech Republic, 2.8 percent - Portugal, 2.4 percent - Germany, 2.3 percent – Russia, both Austria, and Spain – 2.2 percent, both France and Croatia – 1.9 percent, Greece – 1.8 percent and 3.1 percent of the exports accounted for other countries.

In addition, in the export value of Azerbaijani non-oil products, the share of goods was as follows: Russia (34.3 percent), Turkey (23.5 percent), Switzerland (12.1 percent), Georgia (6.0 percent), China (4.2 percent), Italy (2.9 percent), Ukraine (2.2 percent), Brazil (2.2 percent), Germany (1.6 percent), Kazakhstan (1.3 percent), Greece (1.2 percent) and Iran (1 percent).

As for the variety of Azerbaijan’s exported products, it should be mentioned that in January 2020, the export of the following most important sorts of products increased compared to January 2019.

Vegetable oil – 9.3 times, canned fruit and vegetable – 1.8 times, fruit and vegetable juice - 1.7 times, margarine and other mixtures useful for food - 3.9 times, potatoes - 17.3 percent, polyethylene - 1.6 times, raw aluminum - 5.1 percent, cotton yarn - 3.7 times, pipeline (black metallurgy) - 25.3 percent, bentonite clay - 18.4 percent.

Along with it, the decline was recorded in the export of fresh fruit - by 22.7 percent, fresh vegetables - by 17.0 percent, sugar - by 44.5 percent, tobacco - by 67.1 percent, tea - by 56.6 percent, natural grape wine and grape must – by 87.3 percent, cotton fiber - by 11.7 percent.

Note that in 2019, Azerbaijan's non-oil exports exceeded $1.9 billion. According to government estimates, the volume of non-oil exports should exceed $3 billion by 2024.

Earlier, the government informed that it plans to allocate $11.8 million to promote the country's non-oil exports in 2020. Azerbaijan’s non-oil industry is expected to demonstrate an 8.8 percent growth in 2020.

The five major countries that import Azerbaijani non-oil products include Russia, Turkey, Switzerland, Georgia, and Italy. A major part of the non-oil products export accounts for Russia.

The steps made for diversification of the economy and the state program “Socio-economic development of regions of Azerbaijan in 2014-2018” made a huge contribution to the non-oil sector, because the main potential for production of non-oil products is concentrated in the country’s regions.

In addition, the opening of Azerbaijani trade houses abroad and organizing export missions to foreign countries to promote the Made in Azerbaijan brand in foreign markets have further developed the share of non-oil products in the structure of the country’s exports.

In addition, the increasing number of plants operating in the non-oil sector promises very good prospects for Azerbaijan to diversify its economy, reduce oil and gas dependency and increase the inflow of foreign currency into the country.