External trade drastically drops by $3.37 bln as of 26 Feb

Myanmar’s external trade between 1 October and 26 February in the current financial year 2020-2021 shrank to US$12.75 billion, a sharp drop of $3.37 billion compared with the corresponding period of the FY2019-2020, according to the Ministry of Commerce.

During the same period in the previous FY, the trade stood at $16.12 billion, according to data released by the ministry.

During the past five months, Myanmar’s export was worth over $6.45 billion, which plunged from $7.6 billion registered a year-ago period. Meanwhile, the country’s import was valued at $6.29 billion, showing a decrease of $2.223 billion compared with the last FY.

Both sea trade and border trade dropped amid the coronavirus impacts. The neighbouring countries tightened border security and limit the trading time to contain the spread of the virus. Pandemic-induced container shortage pushed up the freight rates to almost triple in Myanmar, causing delays for traders.

Additionally, some ocean liners suspended cargo transport from Myanmar, according to the Myanmar Mercantile Marine Development Association.
Furthermore, the current political conditions drag down the trade. At present, the traders have a transaction problem triggered by the shutdown of the private banks, a market observer shared his opinion.

Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods.

The country’s export sector relies more on the agricultural and manufacturing sectors. The government is trying to reduce the trade deficit by screening luxury import items and boosting exports.

Under the National Planning Law for the Financial Year 2020-2021, Myanmar intends to reach an export target of US$16 billion and import at $18 billion.

The Ministry of Commerce is focusing on reducing the trade deficit, export promotion and market diversification. Since 2011, the Ministry of Commerce has adhered to its reform policy. A series of moves to liberalize and open the economy have been introduced through policy development to improve the trade environment. — KK/GNLM

Share this post
Hot News
Hot News
Myanmar Rescue Organization provides water to insufficient areas and plans to continue to help
Putao to Mt Hponkanrazi climbing tour arranged in April to enjoy the greatest beauty with dense snow caps
Car rental for travelling recently increases, day trips around Yangon rise
Promoting yam eating culture in Myanmar to develop domestic market
SAC Chairman Commander-in-Chief of Defence Services Senior General Thadoe Maha Thray Sithu Thadoe Thiri Thudhamma Min Aung Hlaing delivers speech at 79th Anniversary of Armed Forces Day parade
Tatmadaw families led by Senior General Min Aung Hlaing and wife pay respect to retired senior military officers who attended 79th Anniversary of Armed Forces Day ceremony
SAC Chairman, senior military officers pay tribute at Memorial to Fallen Heroes in Nay Pyi Taw
Senior General: National Defence and Security Council to facilitate transition to democratically elected government
SAC Vice-Chairman Deputy Commander-in-Chief of Defence Services Commander-in-Chief (Army) Vice-Senior General Soe Win and wife pay respect to Independence Mawgun Award winners who will attend 79th Anniversary of Armed Forces Day Parade
Ngwehsaung attracts domestic, foreign tourists on Armed Forces Day