Myanmar’s trade deficit for the first four months of the fiscal year has declined.
Imports have increased at a slower pace compared to the same period of the last fiscal year.

Myanmar exports items from seven major commodity groups. These include manufactured goods consisting mainly of garments as well as agriculture produce, minerals, cattle, fisheries and forestry products. Myanmar’s major import items are divided into four groups — capital goods, intermediate goods, consumer goods and cut-make-pack garment products.

The higher volume of exports reflects the government’s efforts to reduce the trade deficit by screening luxury imports, encouraging import substitutes and boosting exports. They also come at a time when foreign direct investments into the country have eased over the past year.

Myanmar’s current account deficit, which includes the trade deficit, is financed mainly by foreign direct investments into the country. On the other hand, the fall in imports of capital goods also reflects less demand and activity in the industrial and construction sectors, implying a slowdown in the broader economy.

The trade volume for the period up to the second week of February reached 12.65 billion dollars, a gain of 634 million dollars compared to the same period of the last fiscal year.