Reforms to continue to drive growth, inflation to accelerate in Myanmar: ADB

 Winfried F. Wicklein, Asian Development Bank’s country director for Myanmar, speaks at the press conference on Asian Development Outlook 2015: “Financing Asia’s future growth and implications for Myanmar” in Yangon on Tuesday.—Photo: Ye Myint
Winfried F. Wicklein, Asian Development Bank’s country director for Myanmar, speaks at the press conference on Asian Development Outlook 2015: “Financing Asia’s future growth and implications for Myanmar” in Yangon on Tuesday.—Photo: Ye Myint

Yangon, 24 March —Myanmar’s ambitious structural reform program has underpinned strong growth in recent years that is set to continue in 2015, the Asian Development Bank said in its economic report released Tuesday.
The ADB’s flagship annual economic publication, Asian Development Outlook 2015, forecasted Myanmar’s economic growth at 8.3 percent in fiscal year 2015 ending 31 March 2016.
“ADB also expects growth to remain over 8 percent in fiscal year 2016, propelled by investments stimulated by the ongoing reforms, an improved business environment, and the country’s integration into Southeast Asia,” said Peter Brimble, ADB deputy country director in Myanmar. Inflation will likely accelerate to 8.4 percent in FY 2015, propelled by higher fiscal spending and expected higher wages, which will increase domestic demand. Consumer price pressure should then ease slightly in FY 2016 to 6%.
Risks to Myanmar’s economic outlook come from thin external and fiscal buffers, ethnic and sectarian tensions, extreme weather events and a possible slowing of reform momentum ahead of elections.
The ADO stated that the country made positive steps in 2014 to improve its economic data collection, a move badly needed to support policy formulation and planning.
“While the country has made big strides under its economic reform program, many development challenges remain, including improving infrastructure, strengthening governance and public sector capacity, developing human capital, building a dynamic private sector, and revitalizing agriculture,” said ADB country director Winfried Wicklein.
The ADO highlighted the low levels of education and skills among many young people entering Myanmar’s workforce, with employers citing inadequate human resources as a serious barrier to business.
“One of the most critical challenges is to develop the country’s youth, better equipping them for roles in a modern economy and society,” said Chris Spohr, ADB principal social sector specialist in Myanmar. — GNLM

Share this post
Hot News
Hot News