Myanmar’s economy is projected to grow by just 1 percent in 2022, according to a January 26 report.
The World Bank says that while some sectors are showing signs of stabilizing, the forecast reflects that the Burmese economy is extremely weak.
World Bank Myanmar “For most people in Burma, the current situation and the outlook for the future remain worrying,” said Mariam Shaman, director of Cambodia and Laos. “As a result of the ongoing conflict, first of all, the humanitarian perspective is worrying and there may be repercussions for businesses.”
According to a World Bank report released in July 2020 under the previous civilian government, Myanmar’s economic growth, which was affected by the first wave of Kovis, is expected to return to 7.2 percent in the 2020-2021 fiscal year.
The World Bank estimates that Myanmar’s economy will shrink by 18 percent in a 2021 report.
The report also said that if the Kovis-19 epidemic and the military coup had not taken place, economic growth would have been 30 percent smaller than it would have been.
Now, we are beginning to see a stabilization of traffic, but retail trade, Recreation and transportation revenues remain below 30 percent below pre-epidemic levels, according to the World Bank. In addition, consumer demand remained weak due to the impact on incomes and jobs.
Weaknesses in inputs and demand continue to hamper operations; Declining agricultural output; Rapid commodity prices and declining access to credit could worsen food security, according to a World Bank report.
The World Bank estimates that the long-term aftermath of a military coup could hamper Myanmar’s long-term development, and that poverty levels are now more than double that of the Kovis-19 epidemic.