By Elizabeth Adegbesan
The National Bureau of Statistics, NBS, said the All- products terms of trade (TOT) index decreased by 0.35 per in the second quarter of the year (Q2’21).
This was due to declines in the prices of live animals, animal products, wood and articles of wood; wood charcoal and articles, vehicles, aircraft, and parts thereof, vessels among others.
In its latest Commodity Price Indices and ToT report, the bureau said that the All -commodity group import and export indexes increased by 1.07 percent and 0.75 percent during the period, respectively.
The terms of trade (TOT) represent the ratio between a country’s export prices and its import prices. An increase in the terms of trade between two periods (or when TOT is greater than 100%) means that the value of exports is increasing relative to the value of imports.
The report stated: “The All- commodity terms of Trade for April, May, and June, 2021 stood at 101.40, 101.77 and 101.05
“The All-commodity group terms of trade grew by 0.37 percent in May but fell by 0.71 percent in June and on average decreased by 0.35 percent between April and June 2021.
“The decline in terms of trade between April and June was driven by decreases in the prices of live animals, animal products(-3.5 percent), wood and articles of wood, wood charcoal, and articles (-1.59 percent), vehicles, aircraft, and parts(-1.45 per cent).
“The decline was, however, mitigated by an increase in the price of products of the chemical and allied industries (1.14 per cent).”
On import, it said: “The All -commodity group import index increased by 1.07 per cent between April and June 2021. This was driven mainly by an increase in the prices of products of the chemical and Allied industries (1.40 per cent), wood and articles of wood, wood charcoal, and articles (1.37 per cent) Papermaking material; Paper and paperboard articles (1.23 per cent)
“The All-region group import index increased by 1.07 per cent between April and June 2021 due to increases in import prices across All-regions; Oceania (1.4 per cent, America 1.36 per cent , Africa 1.22 per cent, Asia 1.11 per cent and Europe 0.96 per cent respectively. The monthly percentage change showed an increase of 0.12 per cent in May and 0.95 per cent in June.”
On export it stated:” The All-commodity group export index increased by 0.72 per cent between April and June 2021. This Was driven mainly by an increase in the prices of Product of the chemical and Allied industries (2.54 per cent), Plastic rubber and articles (0.85 per cent) and Mineral products (0.74 per cent). However, the index was negatively affected by Live animals, animal products (-2.61 per cent), Vehicles, Aircraft, and parts (-0.24 per cent) and Wood and articles of wood, wood charcoal, and articles (-0.23 per cent).
“All-region export index increased by 0.72 per cent between April and June 2021 due to increases in export prices to All-regions except Africa. During the period under review, America recorded 3.46 per cent, Europe 0.56 per cent, Oceania 0.27 per cent and Asia 0.18. The month–on–month changes show an increase of 0.48 per cent in May and 0.23 per cent in June .”