The trade deficit has significantly decreased due to an increased export volume, according to the data from the Ministry of Commerce as of mid-March from the beginning of the present Fiscal Year.
There is a $3.9 billion trade deficit as of March 15 for the 2018 Fiscal Year. Myanmar’s export volume registered at $13.84 billion while the import volume was $17.8 billion.
The previous Fiscal Year’s trade deficit was over $4.8 billion because the volume of export was over $11.35 billion while imports were over $16.18 billion. Therefore, the trade deficit this Fiscal Year has dropped by approximately $1 billion compared to the previous Fiscal Year.
The reason, economic analysts said, is from a higher volume of re-exported items (re-exportation are items that have been imported, refined in Myanmar, then exported) such as sugar, dry chili, peanuts, cotton, as well as a higher volume of traditional exports such as rice are among the driving forces for the increase.
The total exports for this Fiscal Year is over $31 billion, and therefore it exceeds the previous Fiscal Year by nearly $3 billion whose total trade volume was over $29 billion.
The trade deficit is expected to gradually decrease year by year as there is strong potential for higher exports for rice and beans, in addition to the development of the Thilawa Special Economic Zone (SEZ).