The World Bank said in a report released on January 30, 2022, that while Myanmar’s GDP grew by 3% last 12 months and is anticipated to stay at that level in 2023, it still lags far behind the extent before the military overthrew the federal government in early 2021.
According to estimates by the worldwide development organization, Myanmar’s economic activity remains to be greater than 10% lower than before the pandemic and the military takeover. He argues that on a per capita basis, it lags even further.
After rebounding significantly from the pandemic and disruptions attributable to civil conflict and foreign sanctions following the military’s overthrow of Aung San Suu Kyi’s elected government, exports and investment could fall if the worldwide economy continues to say no as expected.
In addition to the long-running conflict between the federal government and armed ethnic groups, the return to military leadership after almost a decade of largely civilian rule sparked widespread protests that was an armed insurgency.
According to the study, “continued war, which is having a terrible impact on lives and livelihoods, and electricity shortages continue to hamper economic activity.”
After growing at the very least 6 percent in previous years, Myanmar’s economy contracted by almost 18 percent in 2021. The modest growth rate last 12 months, resulting from such a low base, means the situation stays dire.
Like other developing countries, Myanmar has experienced a depreciation of its currency against the US dollar.
The value of the kyat fell by a couple of quarter between June and December last 12 months and is now lower than half of what it was two years ago. As a result, importing essential goods corresponding to oil is far more expensive in local currency.
According to the study, inflation in Myanmar reached around 20 percent in July on account of rising prices of assorted commodities, including oil and gas.
Source: OutlookIndia.com
