Myanmar poverty deepens, economic growth stagnant – WB

Myanmar’s economy faces ongoing challenges – stagnant growth, worsening poverty, and persistent conflict – according to a World Bank report released Wednesday.

Myanmar’s GDP is projected to grow by a meager one per cent in the year ending March 2025, matching the previous year’s figure but falling short of the December 2023 forecast of two per cent.

Economic output remains a concerning nine per cent below pre-pandemic levels in 2019, a stark contrast to the region’s broader recovery.

The report outlines a multitude of challenges plaguing Myanmar:

High inflation and unemployment: Both inflation and unemployment remain elevated, squeesing household budgets.

Entrenched poverty: Poverty rates have skyrocketed, reaching 32 per cent in early 2024, matching the concerning levels of 2015. An additional third of the population teeters on the brink of economic insecurity.

Manufacturing slump: Shortages of imported materials, labour disruptions, and power outages have crippled manufacturing activity.

Shrinking consumption: Falling real incomes and depleted savings have dampened consumer spending and retail trade.

The report by the World Bank underscores the urgent need for solutions to address Myanmar’s economic crisis. Only by fostering peace and stability can the country hope to rebuild its economy and improve the lives of its people.

Attribution: World Bank