Burma EconomyThe Burmese economy
Economic OverviewWith a relatively well established economy, a free economy and a generally investment-friendly policy, Thailand is heavily reliant on foreign exchange, with export accounts for about two third of GNP. Agriculture, which consists mainly of small enterprises, accounts for only 10% of GNP, but accounts for about a third of the labour market.
Thailand has recruited an estimate of 3.0-4.5 million migrants, mainly from neighbouring states. Thailand has grown strongly in recent years and has significantly alleviated the country's poor. The Thai government introduced a country-wide 300 Bt (about $10) per diem wages rate in 2013 and introduced new fiscal reform aimed at reducing the rate for middle-income people.
Nevertheless, Thailand's underlying economy is solid, with low rates of inflation, low rates of joblessness and adequate amounts of official and outside indebtedness. The economy has been boosted by a number of cuts in interest rates by the Bank of Thailand.
Thailand faces longer-term labour bottlenecks and internal indebtedness, policy insecurity and an ageing populace represent threats to GDP expansion. Burma has embarked on an economical review to attract FDI and reintegrate into the world economy since the country's move to civil rule in 2011. Among the country's recent macroeconomic reform initiatives are the introduction of a manageable floating of the country's capital in 2012, the grant of the central bank's operating autonomy in July 2013, the adoption of a new anti-corruption bill in September 2013 and the licensing of nine non-Burma owned commercial banking institutions in 2014 and four additional non-Burma owned banking institutions in 2016.
Council of State AUNG SAN SUU KYI and the National League for Democracy, which took over in March 2016, are trying to change the investmentclimate in Burma after US sanctioning was lifted in October 2016 and the Generalized System of Preferences was reintroduced in November 2016. Burma adopted a reformed FDI bill in October 2016 that consolidated capital expenditure rules and simplified the licensing proces.
Since 2011, intergovernmental reform and the ensuing relaxation of most West German penalties have resulted in an acceleration in growth from less than 6% in 2011 to around 7% in 2013 to 2017. Burma's rich biodiversity and young workforce attract FDI in the areas of power, clothing, information technologies and foods and beverages.
Myanmar continues to be one of the impoverished nations in Asia - around 26% of the 51 million population lives in extreme poverty. 24% of the population lives in shelters. Burma has been abandoned by insulationist politics and the maladministration of former government economies, with bad infrastructures, indigenous bribery, undeveloped personnel and insufficient availability of funds, requiring a great obligation to turn back.
Burma's authorities have been sluggish in tackling obstacles to the country's economy, such as uncertain property laws, a tight trading license system, an obscure system of collecting revenues and an outdated bank system. The AUNG SAN SUU KYI administration focuses on speeding up farm production and soil reform, modernising and opening up the finance industry and expanding transport and power infrastructures.