06 Oct GDP growth linked to infrastructure investment
In the last decade, the country’s Gross Domestic Product (GDP) grew by an astounding 135% starting 2009. Myanmar’s contribution to the GDP of ASEAN overall is 2.9%. The country has faced socio-economic problems in the past decade as a result of which the growth of GDP has been very erratic. GDP grew leaps and bounds in the first part of the decade between 2010 & 2015. In 2019 the GDP grew by a mere 2.8% which was a big drop from the preceding year where the GDP growth rate had been 6.75%.In terms of GDP growth, Myanmar has outperformed the OECD and the G7. However, the pandemic and the coup have hit the brakes on Myanmar’s economic dreams.
Myanmar’s pandemic outbreak has been relatively small compared with other countries in the region since it found its first case in March, with very few deaths reported. However, though officially recorded cases of COVID-19 in Myanmar remain low, the social and economic impact is likely to be significant given the externally oriented economy, uneven social safety nets, and the fragile healthcare system.
As per ADB estimates, Myanmar‘s GDP growth is expected to contract by 9.8% in 2021. Following Feb. 1, 2021 military coup in the country, World Bank also forecasted in May 2021, that Myanmar’s economy is expected to contract by 10% this year, a sharp reversal from the previous prediction of 5.9% growth in October 2020. Economic recovery will depend on on sustained private and public sector investment in infrastructure.