Yet, export volumes have been rising, indiciating that Myanmar goods are still affordably priced. For the first four months of fiscal 2019-20, which is between October 1, 2019 to now, export volumes hit US$5.7 billion, up more than 28 percent from the same period in the previous fiscal year, according to official data from the Ministry of Commerce (MOC). 

Imports for the same period totaled US$6.3 billion, which is up by just 19 pc year-on-year. 

That’s led to a trade deficit of around US$600 million in the current fiscal year, compared to more than US$1 billion in the previous corresponding period. 

The rise in exports was driven by higher demand for manufactured goods like garments, agriculture commodities and minerals, the data showed. 

But due to the upcoming general election and a slowdown in the global economy, foreign investors are expected to become more cautious when channeling foreign currency into Myanmar, said U Maung Maung Lay, vice chair of the Union of Myanmar Federation Chambers of Commerce and Industry. 

He added that local businesses have also been making fewer investments and are now importing less. 

This implies that the kyat could lose steam against the USdollar in the months ahead. 

The MOC is expecting total exports for the year to hit US$15.5 billion and for imports to reach US$17.5 billion this fiscal year. 

That’s lower than in fiscal 2018-19, when exports were valued at US$16.9 billion compared to imports of US$18 billion.

This is also, in part, due to an expected weakening in overall demanddue to slowing global trade and moderating economic growth in China, according to the World Bank.

Under the National Export Strategy 2020-2025, the priority sectors are agro-processing, textile and garment, electrical components, fisheries, forestry products, information technology, logistics services, quality management, trade information, innovation and entrepreneurship.

Source: https://www.mmtimes.com/news/exports-rise-even-kyat-strengthens-against-us-dollar.html