Burma Economy StatisticsMyanmar Economy Statistics
Myanmar Economy Statistics
Burma, a resource-rich nation, is suffering from omnipresent state control, ineffective macroeconomic policy, bribery and peasant inequality. In spite of Burma's rise as an oil exporting nation, socio-economic circumstances have worsened under the regime's maladministration, with the majority of the population living in extreme poverty, whilst political and commercial leadership are exploiting the country's abundant reserves.
Macro-economic disparities - increasing headwinds, budget shortfalls, several formal currency parities overvaluing Burma's Khat, a biased interest system, untrustworthy statistics and the failure to bring the country's macro-economic accounts into line to produce a real GNP ratio - are grave to the economy. Burma's bad business environment is hampering the influx of FDI; in recent years FDI has stayed away from almost all sectors except oil and natural Gas, electricity, wood and mines.
There is a general perception that the working environment is obscure, dirty and extremely ineffective. A number of state companies have recently been privatised by the state, but most of the advantages have gone to the regime's insideers and allies. In 2003, a severe bank crises led to the closure of 20 privately-held financial institutions, which continue to work under strict conditions and restrict retail lending.
United States, European Union, Canada and Australia have applied fiscal and commercial penalties against Burma by banring most financing operations with Myanmar corporations, ban on travelling by Myanmar civil servants and other persons associated with the current government and ban the import of certain Myanmar produce. Those penalties affected the country's young apparel industries, isolating the troubled bank sectors and increasing the cost of doing dealings with Myanmar businesses, especially with those associated with the leader of the Myanmar government.
Referrals from Burma's employees abroad - who had provided substantial funding to their homes - were slowing or drying up as employment was either cut and migratory labourers were returning to their homes. Although the Myanmar authorities maintain good commercial ties with their neighbours, a better climate for investments and businesses and an enhanced policy environment are needed to encourage serious external investments, export and tourist activities.