Non-oil exports grow
By Leman Mammadova
Under the strategy of diversification of the country’s economy, the non-oil sector constantly strengthens its position in the total exports of Azerbaijan.
Azerbaijan exported non-oil products worth $1.1 billion In January-July 2019, which is 17 percent more than in the same period in 2018, reads the export review by the Center for Analysis of Economic Reforms and Communication.
In the reporting period, the bulk of exports accounted for tomatoes - $141.2 million (a 2 percent decline), gold - $85 million (an increase of 24 percent) and raw cotton - $82.2 million (an increase of 83.8 percent).
They are followed by peeled hazelnuts - $71.3 million (an increase by 1.9 times), electricity - $56.5 million (a decline of 0.7 percent), polyethylene - $47.1 million (a decline of 17.8 percent), cherries - $42.2 million (an increase of 11 percent), polypropylene - $41.8 million (an increase by 83.6 times) and methanol - $38.5 million (an increase by 2.9 times).
The non-oil products were exported to Russia in the amount of $395.9 million, Turkey - $251.2 million, Georgia - $100.4 million, Switzerland - $88.3 million, and Italy - $32.4 million.
Non-oil exports to Russia grew by 12 percent, Turkey – 16.7 percent, Georgia – 23.5 percent, Switzerland – 12 percent, and Italy - 2.4 times.
As much as 35 percent of the export of non-oil products accounted for Russia.
Azerbaijan's non-oil exports reached $1.7 billion in 2018, which is 10 percent or $151 million more compared to 2017.
At present, oil and gas account for the main share in Azerbaijan's export, although export of non-oil products shows an upward trend.
Opening of Azerbaijani trade houses abroad and organization of 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 country’s exports.
The steps made for diversification of the economy and the state program “Socio-economic development of regions of Azerbaijan in 2014-2018” made huge contribution to the non-oil sector, because main potential for production of non-oil products is concentrated in the regions of Azerbaijan.
In addition, the increasing number of plants operating in the non-oil sector promises very good prospects for Azerbaijan to diversify economy, reduce dependency on oil and gas sector and increase the inflow of foreign currency into the country.
SOCAR Carbamide plant is the biggest project in the non-oil sector of Azerbaijan. Its total cost is about 800 million euros, 197 million euros of which were allocated from the state budget of Azerbaijan, 500 million euros were provided via borrowed funds, and 80-85 million euros were allocated from tax and other deductions to the budget, which SOCAR paid for from its own funds.
---
Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888
Follow us on Twitter @AzerNewsAz