Myanmar trade deficit shrinks to over US$22.8 mln in nearly four months

Myanmar’s trade gap has significantly narrowed to US$22.825 million between 1 April and 29 July of the current financial year 2022-2023 from just $81.37 million registered in the corresponding period of the 2021-2022 FY, according to data provided by the Ministry of Commerce.
In the past four months, Myanmar’s external trade soared to $11 billion from $8.76 billion recorded in the-year-ago period.
While exports were estimated at $5.49 billion, imports were valued relatively high at $5.5 billion during April-July period. Compared to the FY 2021-2022, exports showed an increase of over $1.15 billion, while import value was up by $1.1 billion.
Myanmar’s maritime trade climbed up yet the country witnessed a drop in border trade as cross-border trade with the main trade partner China has not returned to normalcy amid the strict virus policy. Red tape and Myanmar’s exchange rate policy resulted in border trade suspension as well.
Myanmar exports agricultural products, animal products, minerals, forest products, and finished industrial goods, while it imports capital goods, raw industrial materials, and consumer goods.
Myanmar’s lower imports and higher exports in the past six-month mini-budget period (Oct 2021-Mar 2022) resulted in a positive trade balance of US$169 million. Moreover, import fall led to the largest trade surplus of $677 million in the FY 2020-2021, with $15.36 billion worth of exports outperforming $14.69 billion worth of imports, according to data provided by the Ministry of Commerce
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 the import substitution.—KK/GNLM