Yangon, April (12)
The Organization for Economic Cooperation and Development (OECD) estimates that, Myanmar’s economic growth rate will be only 2% in 2023, putting it in the lowest rank among ASEAN countries.
The 2023 Economic Outlook for Southeast Asia, China, and India report published by the OECD states that the Gross Domestic Product (GDP) has decreased due to the decrease in private consumption amid political instability in Myanmar.
In 2021, when the military seized power, Myanmar’s GDP showed a negative sign, but it increased by 2% in 2022. In 2023, the country’s GDP is expected to increase by 2 %, but for 2024, the outlook is omitted from the report.
Political expert Dr. Sai Kyi Zin Soe remarked that the estimated GDP growth of 2% is low when compared to the present inflation rate and that Myanmar’s economy is showing a negative sign, depending on current circumstances, adding that “recent unrest, tensions among organizations, market volatility, and a loss of confidence are the reasons for the country’s economic decline”.
According to the OECD report, Myanmar investors are only interested in energy and metal exports, and foreign investment is expected to decline. Last year, Southeast Asia’s economic growth rate was 5.6 %, and it is expected to fall to 4.6 % this year.
Furthermore, the report noted that the main reasons for the Southeast Asian region’s slow economic growth this year are inflation and the global economic slowdown.
Inflation has also soared in more than two years since the military takeover, and subsequently, at least 34 foreign companies have either stopped functioning in Myanmar or sold their businesses and left the country.
According to data from the research organization ISP-Myanmar, the value of outward investment is over US $ 4 billion, which has a huge socioeconomic impact on the grassroots.
According to the National Planning Law, the military council, which has illegally seized power in the country, aims to increase the average production and service value of each individual (Per Capita GDP) to more than 2,400,000 Kyats and the country’s GDP by 4.1 %.
News – Than Lwin Times
Photo: TLT
Thanlwintimes