Economic growth of Myanmar predicted to rise from 6.4 percent to 6.5 percent in this transition period

The economic growth of Myanmar is predicted to rise to 6.5% in 2018/19 from 6.4% in the transition period, according to a semi-annual report on “Myanmar Economic Monitor: Building Reform Momentum” launched by the World Bank on Tuesday.

The report focuses on recent economy developments, prospects and policy priorities in Myanmar with the use of available data reported by the government of Myanmar and additional information collected as part of the World Bank Group’s regular economic monitoring and policy dialogue.

Manufacturing and services sectors show strong performance for economic growth. The service sector is expected to grow well with the growth to 8.3% in 2018/19 compared to 8.2% in 2017/18 because of increased activity in the retail and wholesale sector.

The economic outlook remains positive with the growth expected to reach 6.7% by 2020/21 due to easen trade restrictions, launch of mega infrastructure projects and opened-up financial sector to bigger foreign competitions.

According to the report, the inflation moderated, the kyat stabilized and fuel prices fell in quarter 1 of 2018/19, though there have been some reversals of prices in quarter 2.

Head of Office, World Bank Myanmar, Gevorg Sargsyan said “This report finds that Myanmar’s economy is slowly picking up speed and regaining stability after a volatile 2018. This is supported by subsiding price and exchange rate volatility although inflation pick-up begins lately as rising global fuel prices passed through the economy. The report forecasts Myanmar economy to grow at 6.5% in the fiscal year 2018/19 despite deteriorating external environment.”

The report also highlighted that Myanmar needs to invest twice as much and implement projects three times faster and with higher electricity traffis as electricity demand is rapidly growing.

It is estimated that comsumption will grow at an average annual rate of 11% until 2030. The peak demand is expected to reach 8.6 gigawatts by 2025 and 12.6 gigawatts by 2030 which is a significant increase from current level of 3.6 gigawatts.

During the report launching, the representatives from parliament, government body and private sector also discussed matters on tackling issues occurred along with recent economic development including electricity and foreign direct investment.

(Myanmar International TV Channel: https://www.myanmaritv.com/news/economic-growth-65-economic-growth-predicted-2018-19 )

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