Yangon, 14 December
Myanmar economic recovery will remain slow as a result of rising conflict, trade and logistics disruptions, currency volatility, and high inflation, according to the World Bank on December 12.
Myanmar’s economy is projected to grow by a mere 1% over the year to March 2024, according to the report “Challenges amid Conflict.”.
According to the report, the conflict has escalated nationwide since October, leading to the displacement of an estimated half a million people, disrupting trade routes, and raising logistic costs.
It also stated that even if conflict does not escalate further, growth is expected to remain subdued over the rest of 2024 and into 2025 given a broad-based slowdown across productive sectors including agriculture, manufacturing, and trade.
With its economy still growing at a rate of 10% less than in 2019, Myanmar is the only country in East Asia that has not yet recovered to its pre-pandemic level of economic activity.
Business indicators have worsened since mid-2023, with businesses operating at just 56 percent of their capacity in September, down 16 percent since March, the report said.
In the 12 months to June this year, the value of consumer goods rose by 29 percent, and the recent devaluation of the Myanmar kyat and widespread conflict have continued to raise commodity prices.
The World Bank’s semi-annual Myanmar Economic Monitor stated that food insecurity indicators have gotten worse and household incomes are still under severe strain.
Myanmar is suffering from the effects of high commodity prices, as well as facing a shortage of fuel while relying on fuel amid severe power outages.
News-Than Lwin Times
Photo – CJ