Australian terms of trade for Q2 of 2023.
Export price index -8.5% q/q
- expected -6.7%, prior +1.6%
Import price index -0.8% q/q
- expected -0.8%, prior -4.2%
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In brief:
- Terms of trade refer to the ratio between the prices of a country’s exports and the prices of its imports. In other words, it’s the relative value of a country’s exports to its imports.
- When the terms of trade of a country are improving, it means that the prices of its exports are increasing faster than the prices of its imports. This can lead to an increase in the purchasing power of the country’s exports, which can boost economic growth.
- On the other hand, if a country’s terms of trade are deteriorating, it means that the prices of its imports are increasing faster than the prices of its exports. This can lead to a decrease in the purchasing power of the country’s exports, which can negatively impact economic growth.