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Myanmar Economic Monitor: Livelihoods Under Threat (English)

June 12th, 2024  •  Author:   The World Bank  •  2 minute read
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Myanmar’s economy continues to face significant challenges in 2024. Economic activity has been constrained by elevated conflict, increased macroeconomic volatility, and a challenging business environment. In addition to its ongoing impacts on household livelihoods and agricultural production, conflict continues to disrupt land border trade with China and Thailand, as well as domestic supply chains. Myanmar’s economy continues to face a range of constraints including elevated conflict, trade and logistics disruptions, rapidly rising prices, and shortages of a range of key inputs including labor, electricity, and imported inputs. Conflict has led to substantial displacement among affected populations, disrupted the transport of goods within the country, and blocked cross-border trade. The activation of the conscription law in February has reportedly prompted significant migration out of major urban areas toward rural border areas and to Thailand, with some firms reporting labor shortages as a result. Continued exchange rate depreciation and constrained access to import licenses has resulted in higher prices and ongoing shortages of imported inputs. And electricity outages have worsened further as gas-powered supply falters, with firms forced to use expensive diesel-powered generators to substitute for grid-based power. The economic outlook remains very weak, implying little respite for Myanmar’s households over the near to medium term.

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