The Unit Value Index (UVI) for exports and imports is a measure of the changes over time in the unit value of exported and imported goods.

The UVI for Exports and Imports can be used:

a. To deflate series of nominal values of exports and imports into volume  estimates of Gross Domestic Product (GDP) using the expenditure approach;

b. To study the terms of trade, measure inflation, and forecast future price trends in international macroeconomics analysis; and

c. To analyze the country’s competitiveness in both domestic and external markets.

The key elements in the computation of UVI for exports and imports are:
a. Base year
b. Market basket
c. Weights
d. Index computation

The base year for the computation of UVI is 2018. This is to synchronize with the consumer price index and other price indices generated by the PSA, which has 2018 as base year. This is also in consonance with the recommendation of the PSA Board Resolution No. 01 Series of 2017-146, which approves the synchronized rebasing of price indices to base year 2006 and every six years thereafter.

The derived unit values of exported and imported goods are based on the value and volume of imported and exported goods from the International Merchandise Trade Statistics (IMTS). The IMTS are data that pertain to the movement of goods between one country and other countries.

The source of data in the generation of IMTS are copies of export and import declaration forms (electronic and hard copy) provided by the Bureau of Customs (BOC), Philippine Economic Zone Authority (PEZA) through their Value Added Service providers (VASP).

The generation of UVI for Exports and Imports covering the period January 2018 to December 2023 uses the 2015 Philippine Standard Commodity Classification (PSCC).  Starting 2024, generation of IMTS and UVI will be using the 2022 PSCC.

The lowest level of index computation for UVI is the chapter or 2-digit level. The higher level indices are the section or 1-digit PSCC level index and total export and total import indices.

Market Basket refers to a sample of commonly exported and imported goods.

The specific commodities included in the market basket were selected based on the criteria recommended by ASEANstats with some adjustments. These are as follows:

a. Percent share of Total Free on Board (FOB) Value to the FOB Value of the Chapter in the base year is greater than or equal to 0.2 percent, with a score of 5. Otherwise, the score is 0;

b. Frequency of occurrence is 7 months or higher in the base year and present until 2020, with a score of 3. Otherwise, the score is 0; and

c. Homogeneity (unit value of the commodity has no large deviation from other commodities in the Chapter) is greater than or equal to 60 percent, with a score of 1. Otherwise, the score is 0.

Commodities with total scores of 9 and 8 are included in the market basket. For cases where the number of commodities included based on the above criteria at 10-digit level is less than 3, commodities with total scores of 6 were also included in the market basket.

The weights refer to the relative importance of the chapter/section to the total value of export/import.

For the Section (1-digit PSCC), the weight is the share of the section to the total value of exports/imports.

For the Chapter (2-digit PSCC), the weight is the share of the chapter to the total value of exports/imports.

The PSA uses Chained Laspeyres formula as the method in UVI computation. This was reviewed and endorsed by the Interagency Committee on Price Statistics to the PSA Board for approval. The PSA Board approved the Unit Value Index for Exports and Imports with base year 2018 through Resolution No. 13 Series of 2013 on 29 June 2023.

UVI is released on a quarterly basis through Special Release and Statistical Tables. These are posted 70 days after the reference quarter on the PSA website.

A UVI for exports or imports at quarter t that is higher than 100 means that the unit value of exported or imported goods  has increased relative to 2018. On the other hand, a UVI at quarter t that is lower than 100 means that the unit value of exported or imported goods has decreased relative to 2018.

Example:

UVI (2018=100) for Total Exports in the First Quarter of 2023 = 113.1

Interpretation:

On the average, the unit value of exported goods from 2018 to first quarter of 2023 has increased by 13.1 percent.

A positive annual growth rate of UVI for exports or imports at quarter t means that the unit value of exported or imported goods has increased relative to the same quarter of the previous year. On the other hand, a negative annual growth rate of UVI for exports or imports at quarter t means that the unit value of exported or imported goods has decreased relative to the same quarter of the previous year.

Example:

Annual Growth Rate of UVI for Total Imports in the First Quarter of 2023 = 4.1%

Interpretation:

The average unit value of imported goods from the first quarter of 2022 to the first quarter of 2023 has increased by 4.1 percent.