The World Bank says Myanmar’s economy faces some extremely difficult challenges, as inflation surges and trade falls. Fighting has been raging in the country since the military seized power in a coup nearly three and a half years ago.
The World Bank published its bi-annual Myanmar Economic Monitor Report on Wednesday. It says 3.1 million people have been internally displaced. This follows a massive attack by armed ethnic minority groups in autumn last year.
The report says Myanmar’s GDP grew by an estimated one percent in the year ending in March. But it is still around 10 percent below where it was before the pandemic. The report notes inflation is climbing, and people are reluctant to spend.
It also says more than 17 million people, out of a total population of around 55 million, are in poverty. That is about 7 million more than before the pandemic.
Trade has also fallen off significantly, largely because of disruptions at key land border posts. In the six months to March, merchandise imports fell by 20 percent from the same period a year earlier. Exports dropped by 13 percent. But exports through land borders fell by 44 percent.
The World Bank expects Myanmar’s economy to keep facing significant headwinds. It expects feeble growth, as dislocation, conflict and macroeconomic instability hamper production.