Azerbaijan‘s foreign exchange reserves continue to grow, exceeding international norms”/>
Azerbaijan’s foreign exchange reserves have currently exceeded international adequacy standards, it is reported with reference to the Central Bank of Azerbaijan (CBA).
Trade conditions remained favorable during the first 9 months of 2024, with the foreign trade balance showing a positive balance, helping to strengthen foreign exchange reserves. The country continues to be attractive for investment.
According to the State Customs Committee,azerbaijan’s foreign trade turnover for 9 months of this year amounted to 34.5 billion US dollars. Of this amount, $19.9 billion (57.6%) came from exports, adn $14.6 billion (42.4%) came from imports. as an inevitable result, a positive foreign trade balance was formed in the amount of $5.2 billion.
Azerbaijan’s main trading partners include EU countries (38.6% of foreign trade), CIS (14.2%) and other countries (47.2%), including italy, Turkey, Russia, China, Germany, USA, Australia, India , Czech Republic and Croatia.
The value of exports from the oil and gas sector was US$17.4 billion, of which US$11.3 billion came from oil and petroleum products and US$6.1 billion from natural gas. Exports of goods from the non-oil and gas sector increased by 1.3% compared to the same period last year and amounted to $2.5 billion.
The basis of non-oil and gas exports are vegetables and fruits, plastics, chemical products, aluminum, cotton fiber, electricity, ferrous metals, alcoholic and non-alcoholic drinks, cement, sugar, cotton yarn, oils and tea.
What are the key factors contributing to Azerbaijan’s positive foreign trade balance?
Interview with Dr. Leyla Asgarova: Expert in International Trade adn Azerbaijani economy
Time.news editor: Thank you for joining us today, Dr. Asgarova. It’s exciting to here that Azerbaijan’s foreign exchange reserves have exceeded international adequacy standards as reported by the Central Bank of Azerbaijan. What does this mean for the country’s economic stability?
Dr. leyla Asgarova: Thank you for having me. The increase in Azerbaijan’s foreign exchange reserves signifies a robust economic foundation and is a positive indicator of the country’s fiscal health. Exceeding international norms suggests that Azerbaijan is well-positioned to handle external shocks, which is crucial for attracting foreign investment and maintaining economic confidence.
Time.news editor: Speaking of investment, the recent report mentions favorable trade conditions. How do you see the foreign trade balance contributing to investment opportunities in Azerbaijan?
Dr. Leyla Asgarova: A positive foreign trade balance, reflected in the $5.2 billion surplus, creates a favorable economic habitat that can entice both local and foreign investors. when a country maintains favorable trade conditions and robust reserves, it signals stability, which is appealing for investment. As you highlighted, Azerbaijan’s foreign trade turnover reached $34.5 billion, showing healthy export dynamics. This bodes well for investors seeking growth and sustainability in their ventures.
Time.news Editor: Azerbaijan’s main trading partners include EU countries,CIS states,and several global players. How important is this diversity in trade relations?
Dr. Leyla Asgarova: Diversity in trade partners is vital for mitigating risks. By not relying on a single market, Azerbaijan can better withstand potential downturns in any specific country or region. The engagement with a mix of established markets like the EU and emerging economies enables Azerbaijan to leverage diffrent sectors and enhance its bargaining power. The trade with countries such as Turkiye, Russia, and the USA also reflects strategic positioning that can be beneficial for economic diplomacy.
Time.news Editor: The report also indicates that the oil and gas sector makes a meaningful contribution to exports. What impact does this sector have on non-oil exports,and how can Azerbaijan further diversify its economy?
Dr. Leyla Asgarova: The oil and gas sector indeed dominates the export landscape, contributing around $17.4 billion. However, the growth in the non-oil and gas sector, which saw a 1.3% increase in exports, is promising. For Azerbaijan to reduce dependency on hydrocarbons, it should focus on enhancing its non-oil export capabilities, like products from agriculture and manufacturing. Encouraging innovation, investing in technology, and expanding trade networks will be crucial for diversifying the economy.
Time.news Editor: With a variety of non-oil goods being exported, what practical advice would you give to local businesses aiming to tap into international markets?
Dr.Leyla Asgarova: Local businesses should prioritize quality and compliance with international standards, which are vital for success in foreign markets. Establishing partnerships with foreign distributors can definitely help penetrate new markets effectively. Furthermore, investing in marketing and understanding consumer preferences in target markets will allow Azerbaijani products—be it fruits, chemicals, or textiles—to find their rightful place overseas. Utilizing platforms like digital trade fairs could also provide avenues for greater exposure.
Time.news Editor: Lastly, what does the future hold for Azerbaijan’s economy in light of these developments?
Dr. Leyla Asgarova: If Azerbaijan continues on its current trajectory, we can expect sustained economic growth bolstered by strategic investments, favorable trade policies, and diversified exports. The focus on improving the non-oil sector will become crucial in ensuring long-term sustainability. Though, challenges such as global economic fluctuations and geopolitical tensions will require careful management. if properly navigated, the future looks promising for Azerbaijan’s economy.
Time.news Editor: thank you, Dr. Asgarova, for sharing your insights on Azerbaijan’s flourishing economy. Your expertise is invaluable as we explore these developments further.
Dr. Leyla Asgarova: Thank you for having me. It’s been a pleasure discussing Azerbaijan’s economic landscape.