{
  "title": "Commodity Commotion",
  "publication": "IMF Blog, December 21, 2016",
  "sourceUrl": "https://www.imf.org/en/blogs/articles/2016/12/21/commodity-commotion",
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  "summary": "Terms of trade is the price of a country’s exports relative to its imports.",
  "sections": [
    {
      "heading": "Definition: terms of trade and commodity terms of trade",
      "content": "- Terms of trade is the price of a country’s exports relative to its imports.\n- The commodity terms of trade refers to a country’s commodity exports relative to its commodity imports."
    },
    {
      "heading": "Impact in 2015",
      "content": "- Commodity-exporting economies: terms of trade dropped by an average of about 10 percent of GDP in 2015.\n- Commodity-importing economies: experienced about a 2 percent of GDP benefit from the 2015 drop in prices."
    },
    {
      "heading": "Developments in 2016 versus spring 2016 World Economic Outlook projections",
      "content": "- Spring 2016 WEO projection: another 2 percent decrease in the terms of trade for commodity-exporting countries in 2016.\n- Actual IMF estimate for 2016 (commodity-exporting countries): decline on average is estimated to have been closer to ½ percent of GDP.\n  - Note: this smaller decline does not do much to help recuperate the losses suffered in 2015.\n- Commodity-importing countries: the IMF estimates the benefit to these economies to have increased by less than ¼ percent in 2016.\n  - This increase is less than half the projected ½ percent anticipated in the spring 2016 World Economic Outlook projections.\n\nSource: Commodity Commotion, iMFdirect, December 21, 2016\n\n---\n\n\n References\n\n- World Economic Outlook\n\nSource: https://www.imf.org/en/blogs/articles/2016/12/21/commodity-commotion"
    }
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    "Authors: iMFdirect",
    "Published: December 21, 2016",
    "Terms of trade is the price of a country’s exports relative to its imports.",
    "The commodity terms of trade refers to a country’s commodity exports relative to its commodity imports.",
    "Commodity-exporting economies: terms of trade dropped by an average of about 10 percent of GDP in 2015.",
    "Commodity-importing economies: experienced about a 2 percent of GDP benefit from the 2015 drop in prices.",
    "Spring 2016 WEO projection: another 2 percent decrease in the terms of trade for commodity-exporting countries in 2016.",
    "Actual IMF estimate for 2016 (commodity-exporting countries): decline on average is estimated to have been closer to ½ percent of GDP.",
    "Commodity-importing countries: the IMF estimates the benefit to these economies to have increased by less than ¼ percent in 2016.",
    "[World Economic Outlook](http://www.imf.org/external/pubs/ft/weo/2016/01/)"
  ],
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