Reforms to further drive growth
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Asian Development Bank forecasts the economic growth rate of 8.3 per cent for Myanmar in the next fiscal year, underpinned by reforms.
Released yesterday, ADB’s flagship annual economic publication, Asian Development Outlook 2015 (ADO), forecasts Myanmar’s economic growth at 8.3 per cent in the next fiscal year 2015, which will start on April 1.
“ADB also expects growth to remain over 8 per cent 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, Deputy Country Director in Myanmar.
The government’s ambitious structural reform programme has underpinned strong growth in recent years and this is set to continue in 2015, the report said.
Inflation will likely accelerate to 8.4 per cent in the fiscal year, propelled by higher fiscal spending and expected higher wages, which will increase domestic demand.
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. ADO notes the country made positive steps forward in 2014 in improving its economic data collection, which is 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.
