Myanmar’s Tough Economic Times Forecast to Continue

By The Irrawaddy 8 March 2023

Under military rule, Myanmar’s economy looks set to remain moribund this year, with forecasters predicting the country will see the region’s lowest growth and highest inflation rate.

Myanmar’s GDP is expected to grow 2.6 percent this year—the lowest among ASEAN countries—while its inflation rate will be higher than any other member of the regional bloc at 8.5 percent, according to a forecast by the Asian Development Bank.

Myanmar’s junta, which seized power in a coup in February 2021, is struggling to revive the fragile economy by promoting foreign investment. It had approved over US$92 billion worth of foreign investment as of Jan. 31, according to the Directorate of Investment and Company Administration.

Nearly 50 percent of the foreign investment approved by the junta has been directed at three sectors: power; oil and gas; and manufacturing.

Singapore is Myanmar’s largest foreign investor with over US$25 billion, followed by China with over $21 billion and Thailand with over $11 billion.

Companies from other countries including India, the US, France, Norway, Canada, Germany and the Netherlands also continue to invest in Myanmar, but the value of their projects is relatively low.