Myanmar Economy 2014

The Myanmar Economy 2014

Myanmar's average GDP was 33. The Country Note is an extract from the Economic Outlook for Southeast Asia, China and India 2014: The law applies to all special economic zones. Asia Pacific Economic Outlook, January 2015. By 2014, the third largest economy after PPP (India) is close by.

Burma 2014 Review | Myanmar 2015

An increase in FDI and sound home market demands led to significant economic expansion in Myanmar in 2014. The year also posed a number of challanges that led to a broadening of the balance of payments gap, as the economy is highly dependent on imported goods to sustain exploding internal consumption. The figures published in mid-December by the Directorate of Investments and Business Management show that in 2014 there was a significant increase in FDI.

Approximately $3. Eightbn occurred during the first eight moths of the 2014/2015 fiscal term starting in April - almost the entire amount saved for the prior business year of $4. onebn, according to Reuters. of the investments, with $1. 1 billion, and hydrocarbon was second in line, raising around $800m.

Myanmar's increasing attractiveness as a new travel region in Southeast Asia helped to boost foreign direct investment. Arrivals amounted to 3. 5m in 2014, up from 2m in 2013, with revenues breaching the $1bn lock to attain $1. 14-bn, an increase of more than 20% on the prior year, according to the latest figures from the Ministry of Hotels and Tourism.

Burma is expecting 5 million visitors in 2015. Deutsche Bank's December interim statement praised Myanmar's increasing attractiveness as an attractive location for investments, but also was cautious. Cautions by the IMF at the beginning of the year reflected a IMF warnings that demand-side inflationary pressure and large flows of funds carry the risk that Myanmar's macro-economic governance instruments are still in their infancy.

The 2014 reform announcements will fundamentally change Myanmar's finance industry, with the opening of the bankers' market to external debt. It licensed nine FDI inflows and improved bank service in October. Whilst the new actors will be able to take deposit and grant US dollar and EUR credit to international companies, involvement in the private customer business will remain taboo.

These and other limitations, such as the possibility of lending in national currencies to national companies only through a Myanmar based registrated loan at set interest levels, are seen as restricting the effect that new arrivals could have on the movement of currencies, thereby minimizing their effects on the wider financial world. Yangon Stock Exchange should further expand the Myanmar finance market in 2015.

Myanmar's telecommunications industry also saw increased activities with the introduction of two new licensees. Qatar-based Ooredoo and Telenor, a Norway-based company, started operations in September after receiving licenses in early 2014. However, several risks are impacting Myanmar's economy. Increasing internal consumption and a decline in the Kyoto Protocol, which fell by more than 20% after its IPO in April, resulted in a broadening of the trading gap to over $3 billion in 2014.

Concerns are mounting that declining global power costs could diminish interest in new drilling operations as the US authorities intend to open several new units for this year. Although the immediate prospects are unclear, local power consumption should help to allow Myanmar's long run focus on the country's abundant biodiversity.

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