Economy
From The Report: Myanmar 2018
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Although it has moderated from earlier double-digit highs, GDP growth remained robust in the early 2010s, accelerating from 5.3% in 2010 to 5.6% in 2011, 7.3% in 2012, 8.4% in 2013 and 8% in 2014. Growth has dropped off slightly since 2015, reaching 7% that year and 6.1% in 2016, according to the IMF. External headwinds, internal conflict and delayed implementation of some key reform policies will undoubtedly continue to weigh on macroeconomic growth, but Myanmar’s economic forecast remains broadly positive. While both trade and fiscal deficits present challenges to Myanmar’s public sector stakeholders, increased private sector participation in economic development promises to help the country mitigate declining natural gas revenues, as both ongoing tax reform and fiscal rationalisation preserve financial and economic stability into 2019. This chapter contains interviews with U Kyaw Win, Minister of Planning and Finance; U Phyo Min Thein, Chief Minister, Regional Government of Yangon; and Nguyen Xuan Phuc, Prime Minister of the Socialist Republic of Vietnam.

Articles from this Chapter

Overview

On course: Growth to continue on the back of higher foreign investment, and improvements in public spending and efficiency
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Occupying a strategic position at the crossroads of India, China and Thailand, and now in its seventh year of sweeping economic liberalisation and political transition, Myanmar remains one of the fastest-growing economies in South-east Asia. Although recent GDP growth has moderated from the double-digit highs of the early 2000s, it has remained above 5% for more than 25 years, supported by robust natural resource exports, steady foreign direct investment (FDI), rising incomes and private consumption,…

Interview

Making clear progress: U Kyaw Win, Minister of Planning and Finance, on creating transparency in public financing
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Interview:U Kyaw Win What are the main obstacles to the successful implementation of the Public Finance Management (PFM) Reform Strategy? U KYAW WIN: Myanmar’s PFM Reform Strategy underscores the government’s strong commitment to continuing reform by addressing challenges the country has faced over recent decades. To strengthen institutional capacity, the government is implementing a number of measures that seek to improve our human capital and the transparency of our budgetary process,…

Analysis

Steps forward: Efforts are under way to improve the investment environment
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Myanmar continues to rank low on the World Bank’s annual “Doing Business” report, which measures the investment attractiveness of countries across 10 indicators. However, recent legislation, including the 2017 Investment Law, 2016 Arbitration Law and new anti-corruption measures, have paved the way for a sharp improvement, with the government targeting an improvement in the rankings in the coming years. Enacting subsidiary regulations to enable key legal reforms will be a priority, as will…

Interview

Speeding up: U Phyo Min Thein, Chief Minister, Regional Government of Yangon, on modernising Yangon’s transport infrastructure
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Interview:U Phyo Min Thein What are the key ways to improve Yangon’s basic infrastructure and traffic management? U PHYO MIN THEIN: We are working to improve the quality of life of our citizens by finding the right balance between economic development and the expansion of Yangon, as well as the preservation of the city’s green land and historic heritage. To accomplish this the regional government recognises the importance of addressing infrastructure gaps. During the last decades the…

Analysis

Small but significant: New policies and initiatives are encouraging small business development and improving access to finance
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Although they comprise 98% of businesses in Myanmar, small and medium-sized enterprises (SMEs) are facing a host of growth impediments as the process of economic liberalisation accelerates, including low levels of legal and financial inclusion, infrastructure deficits preventing businesses from fully capitalising on growth in domestic and regional supply chains, and a burdensome regulatory environment. The government’s 12-point economic development strategy specifically targets support for SMEs,…

Interview

Coordinated efforts: Nguyen Xuan Phuc, Prime Minister of the Socialist Republic of Vietnam, on the growing partnership between Vietnam and Myanmar Vietnam
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Interview:Nguyen Xuan Phuc How could the bilateral relationship between Vietnam and Myanmar be strengthened? NGUYEN XUAN PHUC: In line with the main pillars of the Myanmar-Vietnam comprehensive cooperative partnership, bilateral economic ties have been growing strongly. Two-way trade reached $548.3m in 2016, exceeding the target of $500m set by the two governments. Both sides are striving to raise the figure to $1bn. Vietnam has become Myanmar’s ninth-largest trading partner and seventh-largest…