Myanmar’s economic recovery is being hampered by a shortage of foreign exchange, import restrictions and power outages, according to the World Bank.
The business environment remains challenging and many firms are finding it difficult to access foreign exchange, obtain trade licenses, import raw materials, and adapt to logistics constraints, the World Bank said in its country report released on Tuesday.
The assessment serves as a warning against complacency to an economy, which the development lender said showed tentative signs of stabilization in the first half of 2023. Among the positives for Myanmar it listed were a broadly stable market exchange rate, cooling inflation and an uptrend in many economic indicators.
Still, exporters are facing challenges from a combination of waning external demand, an overvalued official exchange rate, and tighter currency conversion requirements, the bank said, maintaining its January growth forecast of 3 percent for the year ending September 30. The economy is likely to return to its pre-Covid levels in 2027 or 2028, said Kim Alan Edwards, bank’s Senior Economist for Myanmar and Thailand.
Myanmar’s economy was first devastated by the pandemic and aggravated by economic sanctions in the wake of the military coup in 2021 that toppled Aung San Suu Kyi-led civilian government. While the central bank switched to a fixed exchange regime last year, open market rates for dollars have been 25-30 percent higher than the official rate, hurting businesses.
Power outages have worsened since early this year, with 42 percent of all firms and over half of manufacturing firms reporting electricity blackouts as the most significant constraint to their operations in March.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
World Bank approves project to boost learning of 2M pupils in MindanaoThe World Bank has approved a project that aims to boost learning outcomes of nearly 2 million students from kindergarten to grade 6 in Mindanao.
Read more »
Philippines signs $1.14-B worth of loans with World BankThe biggest of the agreements is $750 million for the Philippines First Sustainable Recovery Development Policy Loan (DPL) that will support the country’s policy reforms that target environmental protection and climate resilience.
Read more »
World Bank seals P63-B loans to PHThe World Bank has granted over P63 billion in loans to the Philippines to finance various government initiatives of the Marcos administration, the Department of Finance (DOF) announced. | ManilaBulletin READ:
Read more »
World Bank provides loans to support economic recovery in PhilippinesMANILA, Philippines - The Philippines and the World Bank (WB) on Monday signed several loan agreements amounting to 1.14 billion U.S. dollars to finance various government initiatives aimed at accelerating economic recovery.
Read more »
Philippines borrows $1.14 billion from World BankWashington-based multilateral lender World Bank and the Philippine government sign four loan agreements totaling $1.14 billion. The breakdown of the deals includes $750-M from the Philippines First Sustainable Recovery Development Policy Loan. Full story:
Read more »
Myanmar burns over 446 mln USD worth of seized narcotic drugsMyanmar destroyed more than 446.05 million U.S. dollar worth of narcotic drugs seized from around the country to mark the International Day against Drug Abuse and Illicit Trafficking on Monday, police said. | ManilaBulletin
Read more »