Terms of trade adjustment (constant LCU)

This economic indicator reflects the ratio of a country's export prices relative to its import prices, highlighting the ability to sustain a balance between imports and exports, adjusted for inflation in constant local currency units. By analyzing the changes in this ratio over time, it provides valuable insights into a nation's economic health, competitiveness in the global market, and the purchasing power of its currency. A rise in this measurement typically indicates that a country can obtain more goods from abroad for a given volume of exports, suggesting improved economic conditions. Conversely, a decline may signal potential challenges, affecting trade dynamics and ultimately influencing inflation and domestic consumption patterns. Source: