World Bank: Myanmar’s GDP to contract 1%

The World Bank sees Myanmar’s GDP shrinking 1 percent this fiscal year, which ends in March 2025. That’s a downward revision from the previous projection of modest growth. The bank says the country’s ongoing conflict and natural disasters have hit its economy hard.

The bank’s report released Wednesday says inflation is expected to remain at 26 percent in annual average terms, 8 points up from the previous report published in June. The bank projects inflation will reach 30 percent next fiscal year.

Since the junta seized power nearly four years ago, the country’s military has been fighting pro-democracy forces and armed ethnic minority groups.

The report says the protracted conflict has impacted production and supply chains, battering the currency and sending prices soaring.

It also points to widespread flooding triggered by Typhoon Yagi that damaged infrastructure and hurt manufacturing. It says over a third of all companies and more than half of agricultural firms reported losses from the storm in September.

Melinda Good, World Bank country director for Thailand and Myanmar, called it an “urgent and critical” task to support recovery efforts to help Myanmar’s most vulnerable people.

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