In January 2009, the terms of trade of imported and exported goods were considerably higher than in January 2008. Relative to January 2008, prices of imported and exported goods dropped by an average of 7 and 5 percent respectively.
In January, the terms of trade improved for the fifth month running, though less substantially than in November and December 2008. The period of improvement was preceded by twelve months of deterioration, in which import prices increased more rapidly than export prices each month.
The marked decline in import prices in January was partly caused by considerably lower prices for crude petroleum and petroleum derivatives compared to one year previously. The decline in export prices was mainly caused by lower prices for petroleum derivatives. Just like in December 2008, the drop in export prices was somewhat moderated by higher natural gas prices.
More information about terms of trade can be found in the article “Changes in the terms of trade in goods”.
Changes in terms of trade