11 April 2018
GDP growth of Myanmar picked up from 5.9% in 2016 Financial Year to 6.8% in 2017 FY while inflation eased from 6.8% to 5.3%, according to the Asian Development Outlook 2018.
The press conference of the Asian Development Outlook 2018 was held on Wednesday, stating sustainable growth with continued economic reform to finance the current account deficit.
Principal Specialist (Myanmar), Asian Development Bank, Yumiko Tamura said “Myanmar has recorded a higher growth rate in fiscal year 2017 that would help reduce poverty further, and also ensure inclusive growth in the country. It also helps for the development of private sector in the country because the private sector has been engine of the high growth. We also hope to see higher growth rate in the coming 2years particularly supported by Rubber exports as well as the domestic demand.”
The fiscal deficit is estimated to have widened as the government increased spending on electric power infrastructure, healthcare, education and social welfare.
Principal Specialist (Myanmar), Asian Development Bank, Yumiko Tamura said “..infrastructure requirement cover many different areas particularly this country it is needed for sustainable electricity supply which is in fact are very important element for inviting Foreign Direct Investment. Road connectivity is very important as well to bring the producers closer to the market and also facilitate trade within the country and also close border trade activity. Other infrastructure includes better urban infrastructure services to resolve conjunction and also to improve the efficiency of economic activity.”
The sizable Foreign Direct Investment (FDI) is crucial to Myanmar over the medium term to finance its persistent current account deficit and support growth.
Principal Specialist (Myanmar), Asian Development Bank, Yumiko Tamura said “For Myanmar, attracting foreign direct investment is essential to support significant infrastructure requirement as well as its long term development agenda..Myanmar has growing but still under developed financial sector including the capital market therefore FDI has a big role to play to finance both internal and external balances particularly the balance of payment deficit.”
The Asian Development Bank expects the growth rate of the country to reach 7.2% over the next two years.