Lower import drives trade surplus as of 21 January

Myanmar’s lower import as of 21 January in the current six-month mini-budget period (Oct 2021-Mar 2022) resulted in a positive trade balance of US$299 million, according to data provided by the Ministry of Commerce.
Myanmar’s exports surpassed imports in international trade although overall trade value declined compared to the same corresponding period of 2020-2021 financial year.
Between 1 Oct and 21 January, the country’s exports were estimated at $4.68 billion, imports were valued at $4.38 billion this FY. The external trade drastically sank to $9.06 billion from $9.95 billion recorded in the year-ago period.
Myanmar witnessed a slump in exports and imports triggered by the coronavirus impacts. Myanmar’s maritime trade climbed up yet the country witnessed a drop in border trade amid the coronavirus impacts and political changes. The neighbouring countries tightened the border security and restrict trading in certain border areas.
Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods.
Moreover, import fall led to the largest trade surplus of $677 million in the last FY2020-2021, with $15.36 billion worth of exports outperforming $14.69 billion worth of imports.
The country’s export sector relies more on the agricultural and manufacturing sectors. The Ministry of Commerce is trying to reduce the trade deficit by screening luxury import items and boosting exports. The country mainly imports essential goods, construction materials, capital goods, hygienic material and supporting products for export promotion and import substitution.
The ministry has already notified the importers of the compulsory licencing for some imported items. Import licence can be sought from 1 February 2022 with an aim to respond to the post-COVID-19 economic recovery, ensure systematic import and export process and manage foreign capital inflows. — KK/GNLM