Myanmar, once a thriving emerging economy, is now facing significant challenges as civil war continues to disrupt trade and livelihoods. The country’s economy grew at a sluggish pace of 1% annually in the year ending in March, with similar growth rates expected for this fiscal year. Approximately one-third of Myanmar’s population lives in poverty, and the economy remains about 10% smaller than it was before the pandemic.
The ongoing conflict has created numerous obstacles for the business environment in Myanmar. Conflict, trade disruptions, regulatory uncertainty, and power outages have constrained economic activity and weakened the outlook for the near future. The report highlights that there has been little to no improvement in economic activity over the past six months.
Millions of people have been displaced from their homes due to armed conflict across Myanmar, leading to a decrease in the value of the country’s currency, the kyat. Imported goods are scarce due to supply chain disruptions caused by conflict. Factories in Myanmar have reported facing electricity outages that impact their operations significantly. Exports declined by 13%, and imports by 20%, during the half-year leading up to March. Garment factories, which were previously a major source of jobs and export revenues, saw a significant decline in manufacturing exports as global brands pulled out of the country. Labor shortages have worsened as workers flee overseas or move to rural areas due to military conscription efforts.
Pro-democracy guerillas and ethnic minority armed forces continue their fight against Myanmar’s military government, which seized power from Aung San Suu Kyi’s elected government early last year. The military has faced increased pressure from resistance forces resulting in unprecedented battlefield defeats in recent months.
In conclusion, Myanmar faces significant challenges due to ongoing civil war that disrupts trade and livelihoods while creating obstacles for its business environment. While there is hope that peace negotiations will eventually bring an end to this conflict, it remains uncertain when or if economic recovery will occur soon enough for millions of struggling citizens who rely on stable employment opportunities and basic necessities like food and shelter to survive daily life in such challenging times.
In conclusion:
Myanmar’s once booming emerging economy is now facing severe challenges due to an ongoing civil war that has disrupted trade and livelihoods.
According to World Bank economists’ report released on Wednesday (date), Myanmar’s economy grew at an annual pace of just 1% in the year ending March (date). With similar growth rates expected this fiscal year (date), it seems unlikely that economic conditions will improve anytime soon.
Approximately one-third of Myanmar’s population lives below poverty line with an economy still around 10% smaller than pre-pandemic levels.
The report highlights that there has been no significant improvement in economic activity over the past six months (date) indicating a weak economic outlook for Myanmar.
The ongoing conflict has created numerous obstacles for businesses operating within country including constraints such as conflict zones, trade disruptions, regulatory uncertainty and power outages.
