The World Bank has forecast that Myanmar’s economy will continue to shrink. The country’s GDP was initially expected to grow by 1 percent this year, but it actually contracted by 1 percent. The country’s economic growth rate will continue to decline due to the ongoing civil war.
Since the military took power in 2021, the country, which began a civil war, has been struggling with the devaluation of the kyat, electricity shortages, and labor shortages, along with the strengthening of armed resistance movements across the country. In addition, natural disasters, including severe floods in September, have also slowed the country’s economic growth. The main reason for this multifaceted decline is the military coup and the subsequent civil war.
The military situation could worsen in the future, the prospects for the elections that the military is trying to hold are still difficult to predict, and if there is another natural disaster, the country’s economic problems could get worse. The military council’s economic restrictions and power outages have severely affected manufacturing and other sectors.
To make matters worse, the country has seen a surge in emigration in recent years, leading to a shortage of labor and human resources. The military coup that took power in early also prompted more young people to leave the country. As long as the military council is in place, Myanmar’s economy is unlikely to improve.
