EBRD: Energy price rise lifts Azerbaijan's export revenues by 3.9% of GDP

Azerbaijan's net energy export revenues increased by an amount equivalent to 3.9% of GDP amid higher prices on global commodity markets.

According to Report, this is stated in the September edition of the European Bank for Reconstruction and Development's (EBRD) Regional Economic Prospects report.

The report noted that countries in the EBRD regions generally experienced a more moderate increase in petroleum product prices than other emerging economies. At the same time, hydrocarbon exporters, including Azerbaijan, significantly strengthened their position in export markets.

"The largest increases in net import costs were recorded in Bosnia and Herzegovina and North Macedonia, at 3% and 2.3% of GDP, respectively, based on annualized April-May price data. Meanwhile, countries with developed oil refining infrastructure, such as Lithuania and Hungary, were able to offset higher energy import costs through increased export revenues. For net exporters such as Azerbaijan, the estimated impact was an increase in export revenues equivalent to 3.9% of GDP," the report said.

For several other countries in the region, diesel fuel and aviation kerosene were the main drivers of higher import costs.

ING Group previously told Report that every sustained $10-per-barrel increase in oil prices adds around $3 billion to Azerbaijan's annual export revenues and approximately $1.5 billion to state budget revenues from the energy sector, equivalent to about 4% and 2% of GDP, respectively.