Economy
From The Report: Myanmar 2016
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After nearly half a century of isolation, followed by five years of reform-driven growth, Myanmar’s economy is currently expanding at a record rate. As of late 2015 rising investment, growing exports and steadily increasing foreign involvement were expected to push GDP growth to 9.3% during FY 2015/16, which ends in March 2016. The current period of economic expansion is a result of two main causes: a raft of new government liberalisation policies, which have made it much easier to do business in the country, and the fact that Myanmar started from a low development base in 2011, which has meant wide scope for growth as its economy plays catch-up. Regardless, the nation’s rapid growth is widely seen as a positive indicator of future performance and potential. This chapter contains interviews with Axel van Trotsenburg, Vice-President for East Asia and the Pacific, World Bank; Melyvn Pun, CEO, Yoma Strategic Holdings; Dr Kan Zaw, Minister of National Planning and Economic Development; and Adam McCarty, Chief Economist, Mekong Economics.

Articles from this Chapter

Overview

Future facing: Despite some short-term challenges, the economy is poised for continued long-term growth
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After nearly half a century of isolation, followed by five years of reform-driven growth, Myanmar’s economy is currently expanding at a record rate. As of late 2015 rising investment, growing exports and steadily increasing foreign involvement were expected to push GDP growth to 9.3% during FY 2015/16, which ends in March 2016, according to government estimates. This follows on five years of average annual GDP growth of around 7.5% since the current thaw began in 2011, which has had a positive…

Interview

Triple transition: OBG talks to Axel van Trotsenburg, Vice-President for East Asia and the Pacific, World Bank
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Interview:Axel van Trotsenburg How would you assess Myanmar’s institutional capacity to implement its development goals? AXEL VAN TROTSENBURG: Myanmar is going through a triple transition: from military rule to democratic governance; from conflict to peace; and from a state-oriented to a market-oriented economy. As one of the country’s leading development partners, the World Bank hopes its partnership with Myanmar can help its people make this momentous transition. Despite the numerous…

Analysis

In control: The central bank has moved to preserve monetary stability
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In the run-up to Myanmar’s historic November 2015 national elections, public opinion appeared split as to what impact the results of the contest would have on the nation’s economy. “Everyone seems to think that the election is the beginning of Myanmar’s problems, or that electing new leadership will inevitably lead to more growth and economic expansion,” U Soe Win, the managing partner of Myanmar Vigour, which has partnered with Deloitte, told OBG. Win’s concerns, which centred on the…

Interview

Transitional challenges: OBG talks to Melvyn Pun, CEO, Yoma Strategic Holdings
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Interview: Melvyn Pun Where do you see the biggest risks related to property development in Myanmar, and how can those risks be mitigated by new arrivals? MELVYN PUN: It’s not an easy market for new developers. As with all businesses in Myanmar, bureaucracy is not always well understood – the number of permits you need, the criteria, etc. It’s still somewhat a work in progress. There are also some unwritten rules that are easy to breach. One example is the project that was shelved near the…

Interview

Top priorities: OBG talks to Dr Kan Zaw, Minister of National Planning and Economic Development
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Interview:Dr Kan Zaw How would you assess the development of infrastructure capacity since 2011? What projects are under way to ensure economic evolution? DR KAN ZAW: Physical and social infrastructure is a top priority. Myanmar is strengthening its economy by constructing more roads and expanding physical infrastructure for telecommunications, electricity and airports, as well as social infrastructure such as schools, high schools, colleges, hospitals and rural health centres. All of these…

Analysis

Purchasing power: Rising incomes have contributed to a burgeoning middle class and higher consumer expenditures
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In July 2015 the US-based fried-chicken restaurant chain KFC opened its doors for business in downtown Yangon, becoming the first Western fast-food restaurant chain in Myanmar. At the grand opening event and for a week afterward, locals lined up out the door and around the block. The fast-food restaurant’s evident popularity is just one of many recent signs that Myanmar’s middle class has grown rapidly in recent years. Additional examples abound, such as the fact that by April 2014 the number…

Interview

Growing pains: OBG talks to Adam McCarty, Chief Economist, Mekong Economics
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Interview: Adam McCarty What role do you expect transnational economic corridors to play in the Mekong Region? ADAM McCARTY: The corridors connecting Myanmar to China, Thailand and Singapore will be fundamental to the country’s rapid economic development. Increased connectivity is already sparking the rise of regional production centres, and it will bring further economic integration, with ASEAN countries producing intermediary products that China will consume or export as final goods. Yet there…