World Bank says Myanmar economy set for growth rebound

Myanmar’s economy is showing some signs of improvement and its GDP growth is estimated to rebound to 3% in the next fiscal year despite the challenges of continuing conflict and the impact of the devastating March earthquake, the World Bank said on Monday.

In a report, the World Bank said the projected growth is driven by post-earthquake reconstruction and continued targeted assistance for the hardest-hit areas.

However, inflation is expected to remain above 20%.

“These early signs of recovery are encouraging,” Melinda Good, the World Bank Division Director for Thailand and Myanmar, said in a statement.

“However, Myanmar’s economy continues to face formidable obstacles, including constrained reconstruction financing, ongoing conflict and insecurity, and unreliable electricity supply.”

A junta spokesman did not respond to a call from Reuters seeking comment on the report.

In June, the bank had projected Myanmar’s economy to contract by 2.5% during the current fiscal year, which ends in March, after a major earthquake in March that impacted more than 17 million people, 31% of the country’s total population.

Direct damages to property and infrastructure from the 7.7 magnitude quake were initially estimated at $11 billion, or 14% of the nation’s gross domestic product, according to the World Bank.

Myanmar has been in turmoil since the military seized power in 2021, ousting an elected civilian government led by Nobel Laureate Aung San Suu Kyi and triggering nationwide protests that evolved into an armed rebellion against the junta.

The military government plans to hold multi-phased elections starting on December 28, which human rights groups and some Western governments have denounced as an exercise to perpetuate the control of the country’s ruling generals.