Foreign Trade Indices Methodologies

Description
Methodology
Bulletin Main Data Resources
Bulletin Preparation Mechanism
How to Benefit from the Bulletin of Foreign Trade Indices

Description:
An annual bulletin that tables and charts of exports and imports indices, average unit value, relative changes,
and trade exchange rates by commodities main sections, according to the Harmonized System (HS).

Definitions related to foreign trade indices:

Exports Index:
It is an indicator used to measure changes in total value of exports in a certain year, compared to its corresponding
value in the base year.

Imports Index:
It is an indicator used to measure changes in total value of imports in a certain year, compared to its corresponding
value in the base year.

Unit Value Average Index:

It is a foreign trade prices indicator that only clarifies the relationship between the value of the comparison year and
the value of the base year.

Base year:
It is the year or a period where the prices of the comparison year or comparison period are attributed to. When
choosing the base year, it is taken into account that the base year is a normal period characterized by stability and
distance from abnormal conditions, such as, economic crises and wars. And it must be relatively close to the
comparison period, which is usually 12 months. It can be taken as a fixed or a variable base, so tits prices are
attributed to its previous prices only. 2012 has been determined as the base year.
Comparison Year:
It is the year or a period where its prices are attributed to the base year in order to measure changes in prices.

Trade Exchange Net Rate:

It is the (exports' unit value average index divided by the imports unit value average index) multiplied by 100.

Gross Trade Exchange Rate :

It is the ( Exports value index divided by Imports value index) multiplied by 100.

Methodology:
The indices of foreign trade statistics is prepared by the method of the average value of exports and imports,
which relies on data process in the context of foreign trade statistics. The indices building method in general
depends on providing a number of components to calculate those numbers, which are, base year data, relative
values, and the equation of index building.
A.Base Year:
2012 was chosen as the base year to calculate exports and imports indices, in order to unify the base year for
various indices issued by the General Authority for Statistics. The most important of these indices are the
estimates of national accounts for fixed prices and the cost of living indices.
Based on this, the values, volume and averages of that year has been determined to calculate the indices for the
subsequent years.
B.Relative Importance (Weighting):
When building the unit value average index, the volume of the comparison year has been used for weighting
according to (Paasche) style. As for the volume index building, the value averages of base year had been used
for weighting according to Laspeyres collective style.
C.Mathematical Formulas used in Calculating the Indices:
When building the index of exports and imports value, the following formulas have been used:

1.Value Index:

Where :
V: is Value Index, vc: is Comparison year value, v: Base year Value
 2.Volume index:

Where:
Av: is Volume Index, (Av): is Base year unit value average, c: is comparison year volume

3.Unit Value Average Index:

Where:
Va: is the unit value average index

Bulletin Main Data Resources:

Ministry of Petroleum and Mineral Resources: The main resource for petroleum exports.

Saudi Customs: The main resource for non-oil commodity exports and imports.
The clients are provided with this bulletin as follows:
Hard copy.

CDs
Providing it on the website of the General Authority for Statistics for all beneficiaries in the form of (Excel and
Acrobat).

Bulletin Preparation Mechanism:

The bulletin of foreign trade indices is prepared after completing and preparing the foreign trade annual data as
follows:
The preparation and processing of statistical tables.
The preparation of charts.
The preparation of analytical description.
Bulletin review and audit.

 The indices bulletin is printed and published in the form of (hard copy/ CDs/ on the Authoritys website
(www.stats.gov.sa).

How to Benefit from the Bulletin of Foreign Trade Indices:

The results of the foreign trade indices bulletin are one of the most important results for beneficiaries who
benefit from foreign trade statistics inside and outside the Kingdom, such as, (Prices and Indices Statistics,
National income Statistics to be used in the preparation of National Accounts, The Ministry of Economy and
Planning, Saudi Arabian Monetary Agency, and International and regional Organizations).

The Data of the Foreign Trade Indices Bulletin is a Statistical

measure for:
Providing tables and indicators of foreign trade indices to be used in economic studies
and research.

Providing economic indicators such as, Trade Exchange Gross and Net rate.
Source: https://www.stats.gov.sa/en/
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