For that indicator, we provide data for the Faroe Islands from 2000 to 2018. The average value for the Faroe Islands during that period was 103.57 percent with a minimum of 94.54 percent in 2005 and a maximum of 119.68 percent in 2016.
The latest value from 2018 is 116.97 percent. For comparison, the world average in 2018 based on 189
countries is 121.70 percent.
See the global rankings for that indicator or
use the country comparator to compare trends over time.
The terms of trade for the Faroe Islands are calculated as the value of its exports as percent of the value of its imports. An increase in the terms of trade means that the value of exports is increasing relative to the value of imports. The country can afford to buy more imports with the revenue from its exports. For example, an increase in the price of oil increases (improves) the terms of trade for the oil-exporting countries and lowers it for the other countries.
Definition: Net barter terms of trade index is calculated as the percentage ratio of the export unit value indexes to the import unit value indexes, measured relative to the base year 2000. Unit value indexes are based on data reported by countries that demonstrate consistency under UNCTAD quality controls, supplemented by UNCTAD's estimates using the previous year’s trade values at the Standard International Trade Classification three-digit level as weights. To improve data coverage, especially for the latest periods, UNCTAD constructs a set of average prices indexes at the three-digit product classification of the Standard International Trade Classification revision 3 using UNCTAD’s Commodity Price Statistics, international and national sources, and UNCTAD secretariat estimates and calculates unit value indexes at the country level using the current year's trade values as weights.