The visible trade gap and the terms of trade
2.12
Given that the growth rate of the value of total
exports (domestic exports plus re-exports), at 32%, was
faster than that of imports, at 28%, the visible trade
(4)
narrowed to 4% in the third quarter of this year
from 6% in the third quarter of 1982.
gap
2.13
During the
in import prices was
export prices. In
(5) index remained the
this year, at 100 (6)
•
third quarter, the rate of increase
roughly in roughly in line with that of total
consequence, the terms of trade
same as in the second quarter of
/ Invisible
(4) The visible trade gap is defined as the proportion of the value
of imports not covered by receipts from total exports.
(5) Due to the growing importance of re-exports, the terms of trade index has been re-defined as the ratio between the unit value index of total exports (domestic exports plus re-exports) and that of imports. In previous reports, the terms of trade index was defined as the ratio between the unit value index of domestic exports and that of imports.
(6) Comparing the third quarter of 1983 with the same period last year, however, there was a significant deterioration in the terms of trade.
Unit value indexes
(1981
100)
Terms of
Total exports
Imports
trade index+
1982 H1
107
106
101#
H2
107
106
102#
Q1
107
107
100#
02
107
105
103#
Q3
108
104
104#
Q4
107
107
100#
1983 Hl
112
113
100
Q1
110
111
99
Q2
114
114
100
Q3*
119
119
100
Notes: (+) The terms of trade index may not equal to the unit value index of total exports divided by that of imports due to rounding.
(#) The terms of trade indexes prior to January 1983 have been revised according to the new definition given in footnote (5) above.
(*) Estimated by using trade
August 1983.
indexes available up to
14
Page 90Page 91