Since the start of the Covid pandemic, South Africa’s terms of trade has increased meaningfully from already historically high levels. Our terms of trade measures the purchasing power of South Africa’s exports relative to imports. Gold has played an important role in the long term increase, and a large part of the recent increase reflected an increase in US dollar export commodity prices, particularly for platinum group metals, iron ore and coal. Stronger terms of trade raises national income, increasing fiscal revenues and supporting economic growth.
