Myanmar's economy to grow by 1.2 percent: ADB

Myanmar's economic growth will increase by 1.2 percent in the fiscal year 2016-2017, a report of Asian Development Bank estimated on Wednesday.

ADB launched a report for Myanmar's economic outlook 2016 Wednesday.

According to the report, Myanmar's economic growth will reach 8.4 percent in the fiscal year 2016-2017, up from 7.2 percent in 2015-2016.

The inflation will remain high at 9.5 percent for the 2016-2017 but will decrease to 8.5 percent in 2017-2018.

ADB said in the report that Myanmar's positive political developments and structural reform programs will help foster economic growth and investment.

Winfried Wicklein, ADB Country Director in Myanmar, said Myanmar's new government will face the challenges of advancing economic reform, addressing infrastructure and labor shortages and making progress towards peace and social cohesion.

Intensified efforts are needed to connect and develop rural areas to improve access to markets and services and to generate opportunities and jobs.

Foreign direct investment may increase due to the successful political transition, especially investment flow to the special economic zones, transport, telecommunication and energy sectors.

The risks for the economic growth are thin external and fiscal buffers, the capacity of the government to maintain reform momentum, ethnic and sectarian tensions and vulnerability to bad weather.

Weakness of transport infrastructure provides poor access to markets and services. It also provide perpetuates poverty and regional inequality.

ADB estimated in the report that Myanmar needs 60 billion U.S. dollars to upgrade transport systems until 2030. Enditem