By Elizabeth Adegbesan
The All commodity Terms of Trade (ToT) rose quarter-on-quarter (QoQ) by 0.11 percent in the second quarter of the year (Q2’22). This shows a positive growth when compared with the -14 percent decline recorded in Q1 ’22.
The National Bureau of Statistics , NBS, disclosed this today in its All-Commodity ToT reports for Q2’22 noting that the 0.11 percent rise in ToT was due to increases in products prices of wood and articles of wood, wood charcoal and articles, paper making material, paper and paperboard, articles and Miscellaneous manufactured articles.
ToT represents the ratio between a country’s export prices and its im-port prices. An increase in the terms of trade between two periods (or when ToT is greater than 100 percent) means that the value of exports is increasing relative to the value of imports.
The report also showed that on QoQ, the All-commodity group export and import indexes rose by 0.18 percent and 0.07 percent respectively in Q2’22.
NBS said: “The All-Commodity ToT for April and June, 2022 stood at 101.03 percent , 101.05 percent and 101.15 percent respectively. The All-commodity group terms of trade marginally increased by 0.02 percent in May and as well as by 0.10 percent in June resulting in a rise of 0.11 percent between April and June, 2022.
“The average increase in prices in quarter 2, was as a result of an increases in Products prices of Wood and articles of wood, wood charcoal and articles (1.35), fol-lowed by the price of Paper making material; paper and paperboard, articles at (0.61), and Miscellaneous manufactured articles at (0.54).”
On export it stated: “The All-commodity group export index averagely increased by 0.18 percent between April and June, 2022. This is due to increases in the prices of Products of Wood and articles of wood, wood charcoal and articles (1.36), Paper making material; paper and paperboard, articles (0.58), and Plastic, rubber and articles thereof (0.37).
“The All-Region Export Index increased by 0.18 percent between April and June, 2022. This was due to an increase in export prices to most of the regions; Africa (0.95), Oceania (0.65), Asia (0.35) and Europe (0.09), while prices to America stood at (-0.56).”
On imports NBS said, “The All-commodity group import index increased by 0.07 percent between April and June, 2022. This was driven mainly by an increase in the prices of products of Vehicles, aircraft and parts thereof; vessels etc. (+1.14), Products of the chemical and allied industries, (+0.37), and Live animals; animal products (+0.36).
“All Region import index marginally increased by 0.07 percent between April and June 2022, this was due to rising import prices from almost all the Regions with America (+0.43) followed by Asia (+0.38), Africa (+0.15) and negatively impacted by prices of import from Oceania (-0.90) and Europe (-0.20).”