Myanmar trade is expected to hit US$34.7 billion in the new 2020-21 fiscal year despite the ongoing corona virus pandemic, the Ministry of Commerce said.Exports are forecast to total $16.2 billion, while imports should come in at $18.5 billion, leading to a trade deficit of $2.3 billion.
At those levels,trade in the new year fiscal year is expected to grow by $1.6 billion compared to the forecast $33 billion for the current fiscal year. Up to 85 percent of that volume has already been achieved.
Myanmar risks losing chunks of revenue from markets that dominate trade in certain products. The lack of new cut-make-pack(CMP) orders in the garment manufacturing sector is a concern. Since the start of COVID-19, a shortage of raw materials from China and order cancellations from major buyers like EU which accounts for 70 pc of the country’s garment exports, have led to the collapse of many local factories.But there is still potential for recovery and growth.
Moreover,Myanmar is expected to continue displaying high growth potential in garment manufacturing. Beside the low-cost labor, Myanmar’s proximity to China,its special market privileges granted by EU under the Generalized Scheme of Preference and low logistics and transport costs all “work in Myanmar’s favour.” They expect Myanmar’s growth to be driven by lower value basic garment exports which manufacturers will find more challenging to turn a profit on in Bangladesh and Cambodia, where production costs are comparatively higher.
Source: Myanmar Times