IMF positive on Myanmar’s growth outlook

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myanmar-kyatThe International Monetary Fund (IMF) said Myanmar’s economic outlook remains favourable and projected that real GDP growth will rise to about 7.8 per cent in 2014/2015, up from its current growth rate of 7.3 per cent.

IMF’s Myanmar Mission Chief, Matt Davis, gave this assessment at a news conference in Yangon on January 21.

However, he also highlighted several areas of concern. Inflation is expected to exceed 6 per cent by the end of the 2013-2014 financial year, and it will remain high in the coming year. This will be due to pressures from factors like rapid money and credit growth, and possible electricity price hikes. Another concern is limited macroeconomic management capacity and narrow cushions.

Mr Davis said: “Providing the new central bank more autonomy, more ability to conduct monetary policy and to build its reserves and on the government budget side, keep the fiscal deficit to a level which provides development to its people and maintains macroeconomic stability. And to make sure that’s really successful, what’s important is improving tax performance so there’s more money to support growth of Myanmar.”

According to the Myanmar Investment Commission, 61,487 new jobs were created in the country in 2013, mainly triggered by investment in the manufacturing, garment, hotel construction and food industries sectors. Official data shows that companies from 25 countries have invested more than $34 billion in business projects in Myanmar, while local companies have invested around $4 billion in the country up to now, in accordance with foreign and national investment laws.

China used to be one of the largest investors in the country, with most of its money focused on exploration of natural resources and mining.

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Reading Time: 1 minute

The International Monetary Fund (IMF) said Myanmar’s economic outlook remains favourable and projected that real GDP growth will rise to about 7.8 per cent in 2014/2015, up from its current growth rate of 7.3 per cent.

Reading Time: 1 minute

myanmar-kyatThe International Monetary Fund (IMF) said Myanmar’s economic outlook remains favourable and projected that real GDP growth will rise to about 7.8 per cent in 2014/2015, up from its current growth rate of 7.3 per cent.

IMF’s Myanmar Mission Chief, Matt Davis, gave this assessment at a news conference in Yangon on January 21.

However, he also highlighted several areas of concern. Inflation is expected to exceed 6 per cent by the end of the 2013-2014 financial year, and it will remain high in the coming year. This will be due to pressures from factors like rapid money and credit growth, and possible electricity price hikes. Another concern is limited macroeconomic management capacity and narrow cushions.

Mr Davis said: “Providing the new central bank more autonomy, more ability to conduct monetary policy and to build its reserves and on the government budget side, keep the fiscal deficit to a level which provides development to its people and maintains macroeconomic stability. And to make sure that’s really successful, what’s important is improving tax performance so there’s more money to support growth of Myanmar.”

According to the Myanmar Investment Commission, 61,487 new jobs were created in the country in 2013, mainly triggered by investment in the manufacturing, garment, hotel construction and food industries sectors. Official data shows that companies from 25 countries have invested more than $34 billion in business projects in Myanmar, while local companies have invested around $4 billion in the country up to now, in accordance with foreign and national investment laws.

China used to be one of the largest investors in the country, with most of its money focused on exploration of natural resources and mining.

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