Economy grows more than 6 per cent as foreign companies arrive
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Myanmar's economy grew 6.3 per cent in the fiscal year that ended March 31, compared with 5 per cent the previous year, the Asian Development Bank said yesterday.
It said the growth “reflects business optimism buoyed by the government’s steps since 2011 to liberalise the economy and prospects for further reform.” Investor optimism was reflected by a 14-fold increase in the number of new foreign company registrations in the first 10 months of fiscal 2012.
The government granted investment approvals to 62 foreign projects in the April-December period, more than the number granted during the previous three years.
Revenues from tourism exceeded US$500 million (Bt14.5 billion) in 2012, up more than 60 per cent compared with the previous year, ADB said.
“Net foreign direct investment flows and renewed official development assistance supported an overall balance of payments surplus and increase in foreign exchange reserves to an estimated $5.1 billion in fiscal 2012, equal to about 4 months of imports of goods and services,” the report said.
Exports during April-December, were down 3.6 per cent, due to lower demand for agricultural products in China and Thailand, although exports of garments rose 18 per cent.
Myanmar’s exports of natural gas to Thailand, which account for 38 per cent of total exports, were flat.
The bank forecast 6.5-per-cent growth in Myanmar for the current fiscal year, bolstered by brighter export prospects.
“Growth will get a lift from the European Union’s proposed reinstatement of preferential access for Myanmar’s exports under the Generalised System of Preferences and the United States’ suspension of its ban on imports from Myanmar,” it said.
