Myanmar's Economy Grew 3% and Will Achieve the Same Pace in 2023
The World Bank stated in a report published on January 30th, 2022 that although Myanmar's GDP grew by 3% last year and is anticipated to continue at that rate in 2023, it is still far behind where it was before the army overthrew the government in early 2021.
According to estimations from the global development organization, Myanmar's economic activity is still more than 10% behind where it was before to the pandemic and the military takeover. It claims that it is even more behind on a per-capita basis.
When rebounding considerably from the pandemic and the interruptions brought by by civil conflict and foreign sanctions after the army overthrew Aung San Suu Kyi's elected government, exports and investment may decrease if the global economy continues to slump as predicted.
In addition to the long-running conflict between the government and armed ethnic groups, the return to military leadership after nearly a decade of largely civilian governance sparked widespread protests that turned into an armed uprising.
According to the study, "continuous war, which has had terrible effects on lives and livelihoods, and electricity shortages have continued to hamper economic activities."
After expanding at a rate of 6 percent or more in the years prior, Myanmar's economy shrank by nearly 18 percent in 2021. The modest rate of expansion last year, coming from such a low base, implies that the situation is still dire.
Like other developing nations, Myanmar has experienced a depreciation of its currency in relation to the US dollar.
The value of the kyat decreased by approximately a quarter between June and December of last year, and it is now less than half of what it was two years ago. As a result, imports of essential goods like oil are significantly more expensive in local currency.
According to the research, inflation in Myanmar reached about 20 percent as of July due to rising costs for various commodities, including oil and gas.
Why you report this article?
What do you think?
Give a comment