Myanmar records $1.5b trade deficit in first four months
Myanmar’s total trade volume has fallen by almost US$700 million in the first four months of this fiscal year compared to the same period last year, according to Ministry of Commerce data, while the country has racked up a $1.5 billion trade deficit.
Exports in the first four months of FY2016-17 fell by $91.78 million compared with last year, to $3.599 billion, while imports fell by $594.45 million to $5.117 billion, ministry data shows.
“Both imports and exports are down because there have been problems in almost every sector since last year. Also, the agriculture sector, which makes up the bulk of our exports, was hit due to following,” said U Maung Aung, a Ministry of Commerce adviser to the former government.
“It is true that we have a trading deficit, but this is because we import so many raw materials.”
He believes that in the short term, the value of imports will rise because of new investment.
“The value of exports will also rise but we will continue to have a trade deficit for at least the next couple of years,” he said.
Myanmar’s trade deficit has narrowed since the first four months of FY2015-16, when it was running a $2.02 billion deficit.