TASHI PARYANG | Thimphu
The price for export of goods increased by 7.29 percent in the third quarter of 2022, July to September, compared to the third quarter of 2021.
This is according to the Export and Import Price Index: Third Quarter of Jul – Sep. 2022 report published by the National Statistics Bureau (NSB).
Amongst the goods, base metal and other manufactures recorded the highest increase with 11.18 percent contributing to about 68 percent of the overall increase.
This was followed by mineral products, cement, and electricity with 2.07 percent increase, contributing to about 18 percent of the overall increase and food and beverages with 11.37 percent increase, contributing to about 10 percent of the overall increase.
Similarly, chemicals, plastics, textiles, and apparel though recorded the highest increase with 37.59 percent contributed less than five percent of the overall increase due to lower share or weight. However, price of wood, pulp and paper decreased by 7.19 percent on average over the past one year.
The price index report also states that quarter-on-quarter export price recorded a decrease in third quarter after prices increased in the second quarter, 2022. It went down by 1.13 percent mainly contributed by decrease in base metals and other manufactures by 5.87 percent.
Wood, pulp and paper decreased by 3.20 percent while food and beverages also decreased by 0.4 percent. However, prices of chemicals, plastics, textiles, and apparel; and mineral products, cement and electricity increased in third quarter by 6.48 percent and 0.66 percent respectively, according to the NSB.
While the year-on-year inflation rate for imported goods recorded an increase of 18.54 percent in the third quarter of 2022.
The report states that all groups within the import category recorded an increase with mineral products, cement and electricity recording the highest increase among the groups with 31.05 percent. It contributed to about 34 percent of the overall increase.
The report further states that chemicals, plastics, textiles, and apparel increased by 39.72 percent followed by wood, pulp, and paper with 20.9 percent increase accounting for about 27 percent and five percent of the overall increase respectively.
Food and beverages group recorded an increase of 4.39 percent contributing around six percent to the overall inflation, while metal and metal articles recorded the least increase of 10.3 percent accounting to 4 percent of the overall inflation, it says.
The quarter-on-quarter (current quarter compared to previous quarter) import increased by 0.62 percent which was a decline in the rate by 5.92 percentage point.
It also states that the main contributor to the decline, in comparison to the previous quarter, was metal and metal articles which recorded a decrease of 6.82 percent.
Mineral products, cement and electricity also recorded a decline of 4.27 percent. The other two are chemicals, plastics, textiles, and apparel; and machinery, appliances and other manufactures which increased by 5.14 percent and 3.34 percent respectively.
Price of wood, pulp, and paper; and transport equipment increased in third quarter following a decrease in the second quarter.
Due to the higher increase of prices for imported goods vis-a-vis export goods, the price index states that the terms of trade further dropped to 87.25 in the third quarter from 88.69 in second quarter recording a decline by 1.63 percent over the second quarter of 2022. Compared to the third quarter of the previous year, the terms of trade dropped by 9.49 percent.
Meanwhile, increase in terms of trade means more quantity of imports that can be funded by a fixed quantity of exports while decrease in terms of trade means smaller quantity of imports that can be funded by a fixed quantity of exports.