World Economy

WB Predicts Myanmar Growth at 6.7 Percent

WB Predicts Myanmar Growth at 6.7 PercentWB Predicts Myanmar Growth at 6.7 Percent

Given the government’s efforts to accelerate reforms and to modernize the financial sector, Myanmar’s economy is projected to increase to 6.7% next year, according to Ellen Goldstein, World Bank director for Myanmar, Cambodia, and Laos.

She said at the launch of the latest Myanmar Economic Monitor that the medium term outlook for Myanmar remains positive despite some risks. She expects a surge in foreign investment flows to drive further growth, Xinhua reported.

“The report shows that Myanmar’s economy is doing better this year, and we hope the country to maintain the momentum,” she said. “The government needs to ensure the growth is sustainable and inclusive. They need to find ways to stimulate growth and investments to ensure financial inclusion.”

Goldstein stressed an urgent need to address the emerging risks that could affect business sentiment and weaken future performance. “The pick-up in growth and improvement in the macroeconomic situation are encouraging,” she said.

Despite growing global and domestic uncertainty, the growth is estimated to have increased to 6.4% last year from 5.9% in 2016-17 fiscal year. This growth was driven by a recovery in agriculture and especially crop production, improved manufacturing performance, and strong services growth despite a slight slowdown likely due to tourism and banking sector uncertainties, according to the report.

Inflation, which moderated to 5.5% last year from 7% in FY2016-17, is expected to ease further to 4.9% next year.

Goldstein hailed the government’s bid to finalize Myanmar Sustainable Development Plan, which could serve as a platform to make progress in resolving conflicts that jeopardize inclusive and sustained growth. She warned not to underestimate the value of the plan, as it is a clear direction and motivation for Myanmar people, investors and the international community.

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