The country of Myanmar has a good outlook for the future its economy according to forecasts of the ADB and the IMF, which is good news for hotels in Myanmar and for people everywhere in the country.
According to the Deputy Minister for Planning and Finance Maung Maung Win, however, there’s a wrinkle in that good news, which he talked about at the CEO Conference in Novotel Hotel in the city back in the 11th of May. He says that despite the ADB’s and the IMF’s good forecasts, people across the country are experiencing hardships.
He says that the good forecasts were extrapolated by the ADB and the IMF via studying the country’s finances and economic growth rate, with the Ministry of Planning and Finance keeping an eye on Myanmar’s economic conditions.
Data from those organizations have shown good estimates for the country’s economic growth rate, which stays at a particularly high level, however, the predicted growth dropped down a bit thanks to the natural disasters that have struck the country within the past two years, which was expected to be higher, but only sat at 5.9%.
In the fiscal years of 2016-17 and 2017-18, Myanmar’s economic growth rates went up, and is expected to continue growing in the fiscal year of 2018-19, hitting 7% as per the estimates of the aforementioned institutes. The data from the ADB and the IMF expect the growth rate to retain its strong state, which, for any industries and hotels in Myanmar, is good news. These good conditions will beeven more noticeable thanks to the inflation rate’s recent changes.
Myanmar’s inflation rate has gone down to below 6%, compared to the previous two years’ inflation rate of more than 6%, according to data from a report released on the Asian Development Outlook 2018.
Vice-Governor of the Central Bank of Myanmar, Soe Thein, says that the central bank will not pay budget deficits in 2020 to stabilise the inflation rate, instead opting to solve it via the sales of exchange certificates and treasury bonds.
Currently, Myanmar has an average monthly inflation rate of 4.5%, with the ministry working to keep the inflation rate below 5.5%. In January, the inflation rate sat at 4.40%, with the average inflation rate for the six-month fiscal year expected to sit at about 4.89% according to the Union Minister for Planning and Finance, Kyaw Win.