Myanmar Economic Monitor, June 2019 : Building Reform Momentum
Myanmar's economy is slowly picking up speed and regaining stability after a volatile 2018. Despite a challenging global environment, Myanmar's economic growth is expected to rise to 6.5 percent in 2018/19 from 6.4 percent in the Transiti...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/326771560523871008/Building-Reform-Momentum http://hdl.handle.net/10986/31934 |
| Summary: | Myanmar's economy is slowly picking
up speed and regaining stability after a volatile 2018.
Despite a challenging global environment, Myanmar's
economic growth is expected to rise to 6.5 percent in
2018/19 from 6.4 percent in the Transition Period1 supported
by strong performance in the manufacturing and services
sectors. Volatility that buffeted the economy in 2018 has
started to ease. Inflation moderated, the kyat stabilized,
and fuel prices fell in Q1 2018/19, though there have been
some reversals in prices in Q2. The economic outlook looks
positive, with growth expected to reach 6.7 percent in the
medium-term. The recent decisions to ease trade
restrictions; open the financial sector to greater foreign
competition; and begin mega infrastructure projects signal a
decisive and awaited uptick in reform momentum. Downside
risks to the economic outlook are driven by external
factors, including possible revocation of preferential trade
access under the European Union Generalized System of
Preferences. Slowing global and regional growth, especially
in China, together with renewed escalation of global trade
tensions, could also slow exports and the flow of inbound
foreign investments. Insecurity in border areas, the Rakhine
crisis, with violence and forced displacement of refugees,
and the recent flare-up in violence involving the Arakan
Army, could affect investors' sentiment. The 2020
general election is also a source of uncertainty. |
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