Myanmar's weak economy intensifies livelihood threats
Poverty in Myanmar is more widespread than at any time in the previous 6 years and growth in the conflict-torn nation is likely to remain at a measly 1% in the current financial year with little respite in sight, the World Bank said on Wednesday.
The report highlights that escalating violence, labor shortages, and a depreciating currency are major obstacles for businesses. These issues have compounded since the 2021 military coup, which halted a decade of tentative democratic and economic reforms, plunging the country into political and economic turmoil.
In December, the World Bank had forecasted a 2% growth for Myanmar's economy in the current fiscal year, following an estimated GDP growth of 1% for the year ending in March 2024. However, the outlook has now been revised downward.
"The revision in projected growth for 2024/25 is mainly due to persistent high inflation and significant constraints on access to labor, foreign exchange, and electricity. These factors are expected to have a more substantial impact on economic activity than previously anticipated," the World Bank stated.
Myanmar's ongoing civil war, involving various new armed groups and established ethnic armies resisting the junta, has displaced over 3 million people. This conflict has also pushed poverty rates to 32.1%, reverting to levels last seen in 2015.
'The severity and depth of poverty have worsened in 2023-24, indicating that poverty is now more deeply entrenched than at any point in the past six years,' the report concluded.
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