Myanmar economy to remain ‘severely tested’ by coup fallout – World Bank By Reuters


© Reuters. FILE PHOTO: A woman holds money as she buys fruits at a market in capital Naypyitaw January 24, 2012. REUTERS/Damir Sagolj


(Reuters) – Myanmar’s economy will remain critically weak for much of 2022 and will be “severely tested” by the impacts of a coup a year ago, but there are recent signs of stabilisation in manufacturing and exports, according to the World Bank.

In its latest update on Myanmar’s economy, the World Bank projects growth of 1% in the year to September 2022, weighed down by the impacts of the pandemic and the military’s overthrow of an elected administration on Feb 1, 2021.

Myanmar’s economy has tanked since the coup and the junta’s crackdown on its opponents and ensuing backlash from armed groups has led to a retreat by foreign firms concerned about political risks, sanctions and damage to their reputation.

The World Bank said there were substantial supply and demand issues, cashflow shortages for businesses and reduced credit access, while half of firms it surveyed reported difficulties last year due to a sharp depreciation of the kyat currency.

“The near-term outlook will depend on the evolution of the pandemic and the effects of conflict, together with the degree to which foreign exchange and financial sector constraints persist, as well as disruptions to other key services including electricity, logistics and digital connectivity,” the World Bank said in its January economic monitor.

Myanmar’s junta has blamed last year’s economic crisis on foreign-backed “sabotage”.

The military government on Thursday said it had approved $3.8 billion in foreign investment since the coup, owing to what it called a return to stability and confidence in its economic potential.

The World Bank said events since the coup were likely to limit Myanmar’s growth potential, with most indicators suggesting private investment had fallen markedly, while the cost of imports has risen and kyat-denominated revenues are worth less in foreign currency terms.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Leave a Reply

Your email address will not be published.

GIPHY App Key not set. Please check settings