MYANMAR’S economy is expected to grow just 1 per cent in the year to March 2024, the World Bank said in a report published on Tuesday (Dec 12), describing a “broad-based slowdown” across its key sectors, including agriculture, manufacturing, and trade.
Myanmar has seen major upheaval since a 2021 military coup upended a wave of unprecedented reforms introduced following decades of isolation and economic decay for a nation rich in natural resources.
Many Western investors have exited Myanmar and broad sanctions are impacting trade, with the private sector’s access to foreign currency a major challenge as foreign reserves come under pressure.
“Little economic growth is expected in Myanmar in the near term as rising conflict, trade and logistics disruptions, kyat volatility and high inflation combine to negatively impact businesses and households,” the World Bank report said, referring to the local currency.
The conflict follows a deadly crackdown by the military that spurred a resistance movement that has joined forces with some ethnic minority insurgents to try to stifle the junta and test its ability to rule.
More than 2 million people have been displaced by fighting since the coup, the United Nations estimates.