Manufacturing continues to languish under COVID-19 as reports show garment exports plummeting by more than 50% for the first two months of the fiscal year.

Ongoing lockdowns, stalled supply chains and low demand from foreign buyers have resulted in total exports of only USD 214 million, compared with USD 450 million, according to the Ministry of Commerce data reported in state media. Within Myanmar, lockdowns and stalled national supply chains have caused hundreds of factories to close down and left tens of thousands without work. However, flagging demand from foreign buyers, especially in Europe, seems to have contributed most to the slump. In September, the Myanmar Garment Manufacturers Association (MGMA) reported that demand from Europe had plummeted by around 75%.

Prior to the pandemic, garments, which account for 30% of Myanmar’s total exports, had enjoyed steady growth. In fact in January, as the virus first began to spread within China, MGMA claimed it was on track to reach USD 10 billion in exports by 2024. Although the sector has suffered a serious setback, MGMA expects the industry to make a rapid post-pandemic recovery, it told the Global New Light of Myanmar in a statement. The organization is holding a virtual press conference Friday December 11 during which it will address the COVID-19 impact.