Burma's foreign earnings to decline-MIZZIMA

http://www.mizzima.com/news/inside-burma/1228-burmas-foreign-earnings-to-decline-.html

by Mizzima News
Saturday, 01 November 2008 16:59


Rangoon — Burma's export earnings are likely to suffer a decline in the current fiscal year, largely resulting from a negative global economic outlook, according to analysts.

"Export [earning] is heavily dependent on natural gas sales – and closely related to slumping oil prices. As such, earnings could experience a drawback in the coming year," a former financial and monetary expert with the Ministry of Finance and Revenue said.

The current fiscal year of 2008-2009 will end on March 31, 2009. The expert said gas prices were always related to oil prices, so the price of gas would decline with the decreasing price of oil.



The price of oil has fallen by over half since its July high of 147 dollars per barrel, with the price now standing at around 67 dollars per barrel.

According to figures released by the Ministry of Commerce, the country has been enjoying a trade surplus since 2002-2003 due largely to the export of gas to Thailand, the principle importer of Burma's gas, resulting in the country earning more than USD 2 billion for the year 2007-2008.

However, the Bank of Thailand said last week that negative factors – including the global recession and domestic political upheaval - would affect the Thai economy until at least early next year.

Another Burmese business expert said the country has already begun suffering from the global economic slowdown, specifically referring to the vital industries of garments and tourism.

"Global demand for services and products from these sectors are showing signs of decline," he said.

Burmese garment and apparel products mainly go to the EU and Japan, markets negatively affected by the financial tsunami originating from the US credit crunch.