Myanmar Economy OverviewThe Myanmar Economy Overview
There has been much talk about the attitude of the National League for Democracy (NLD) led electoral administration towards peacemaking and safety in recent months, drawing focus to the Rakhine state conflict and the action of Myanmar's de facto head Aung San Suu Kyi. However, there are concerns within the state of the state of the local population.
Professor Sean Turnell of Macquarie University of Australia, the Special Economic Advisor to the State Council of Myanmar, recently came out in his 2017 Myanmar Economic Review to present a favourable view of Myanmar's economy: The NLD regime has kept the country's economies from going bankrupt after it spent the so-called "sugar rush" on the former Thein Sein regime in recent years.
Much of the budget shortfall of the preceding regime was expensive, as it squeezed the budget deficits to 4. 5 percent of GNP (GDP) in 2015-2016, which was financed by the pressure of Money. Professor Turnell said the NLD administration had cut the budget shortfall to 2. 5 percent of the 2016-2017 pdp.
It was optimistic that Myanmar's GNP would grow 6.9 percent this year, making it one of the five most rapidly expanding countries in the wor-land . Myanmar's national planning and finance minister Kyaw Win compared Myanmar to "an airplane on a take-off in 2016, but prepared to take off in 2017," at a panel with domestic and international business people.
"It is also our task to put things in order..... to stimulate the economy," he said. However, the World Bank's Myanmar Economical Monitor forecasts that Myanmar's economies will slow down in 2016-2017, with GDP growing from 7.3 percent last year to 6.5 percent. In the street, citizens complain about higher everyday grocery costs, and companies have little to say about the government's policies.
The de facto head of Suu Kyi is seen as giving top priority to the issue of peacemaking, but her followers say that the business world is becoming the focal point. Indeed, the NLD administration has been reluctant to appoint a new investment commission. Six inches after taking up their duties, it took six to announce various financial initiatives that were accompanied by obvious delay.
As Myanmar's 12-point macroeconomic policies came out on July 29 last year - four month after the formation of the new government - there were issues of application. Political guidelines were rather blurred. This was presented as a people-oriented politics with a wide basic stake. The report gave rise to hope for measures for national conciliation, for the conservation of nature and for the creation of an efficient and equitable distribution of wealth between States and territories.
The NLD government's politics seemed at first sight to be a possible inversion of the politics of the former one. She postponed many intergovernmental ventures and reviewed many of them. In addition, the Prime minister of Yangon ordered the abandonment and inspection of high-rise building in his estate, the economic capitol of Myanmar, which further impacted further domestic building activity.
A lot of economists have criticized the regime for not seriously addressing the issue of the newcomer. In the city, many said: "Life is as hard as ever", also once "privileged cronies", when commercial prospects were drying up and the state wanted to raise taxes.
One year after the creation of the European Union, finance minister said they would take business reform seriously and aim for regional and regional policy as well as regional and local policies, promote the growth of small and medium-sized businesses (SMEs) and secure more loans to the microfinance industry. Professor Turnell recently said at an industry panel that the Myanmar administration has implemented a number of important reform measures in the finance industry in recent months, as well as tighter regulatory framework and more stringent cash quotas for retail bankers.
Legislation for a new capital expenditure bill - the introduction of a new geographical and sectoral incentive scheme - was adopted by the federal administration in April and presented to parliament in July. Last September, the United States took many by surprise when it decided to repeal all outstanding trade restraints against Myanmar.
In Myanmar, the US has also reintroduced the Generalised System of Preferences forrade. Myanmar's statute gives it fiscal advantages on imports to the world's biggest economies and in turn attracts FDI to the industry as well. However, these economical possibilities seem in vain as Myanmar is far from prepared to do so.
Some also say that the NLD administration has neither a comprehensive business outlook nor the capacity to harmoniously manage economies to draw in domestic and international invest. In 2017-2018, the FDI has increased with an FDI volume of more than $3 billion ($4.1 billion) authorized by the Myanmar Investments Commission in the first four month of the year, well above the government's goal of $6 billion.
There were no news coverage of capital expenditures in the agricultural, coal, oil AND gaz and building industries, but several million US dollar were raised for transportation and communications, production, energy production, hotel and tourist sectors. Myanmar's economic growth depends on the necessary preconditions, and the Chinese authorities must recognize that "business confidence" is most important to boost local capital expenditure and consumerism.
Governments need to reduce administrative and bureaucratic burdens, boost investments in infrastructures (especially transportation, logistic and power supply) and help small businesses secure rural, financial and access to new technologies in the near time. Myanmar's policies aim to promote the development of people, give high priorities to the development of infrastructures such as power, road and port and establish a Data ID Card System, Digital Governance Strategy and e-Government System to provide jobs for all Myanmar's residents and those returning from abroad.
However, their achievements against these goals are far from being realised, and unfortunately recent racist tension and conflicts in Rakhine and global pressures on respect for fundamental freedoms continue to shift the focus to safety and not to the economic sphere.