Terms of trade tumble again

Dutch terms of trade of imported and exported goods deteriorated substantially in January 2010. Prices of imported goods were 4.1 percent up on one year previously, while prices of exported goods were 0.2 percent down. January was the sixth month in a row in which the terms of trade deteriorated compared with twelve months previously.

The decline in terms of trade was mainly caused by price developments of petroleum and natural gas. The Netherlands imports considerably more petroleum than it exports, and exports much more natural gas than it imports. In January 2010, petroleum prices were much higher than in January 2009, whereas natural gas prices were considerably lower than one year previously. Besides higher petroleum prices, import prices were also higher due to higher prices for petroleum derivatives and basic metal products.

Terms of trade

More figures can be found on the theme page International trade.