Economy of Burma (Myanmar)

Some Facts About Burma’s Economy

First Published Date: June 2, 2012 ADawnJournal.com

The history of Burma has long been known for human rights abuses, corruption, poverty, inefficient economic policies and administrative mismanagement, and an iron-grip control over all aspects of life by the military regime. However, some recent small steps taken by the military ruler shows the willingness to open up Burma to the rest of the world and signal a military to civilian rule, and the results are already visible like a chain reaction. Major developed countries like Canada, USA, the EU, etc. have already eased some sanctions and are willing to do more to help the people of Burma work towards a better future. Today, we will look at some basics of Burma’s economy.

Burma is a resource-rich country and has one of the largest natural gas reserves in the world. Burma is also the home of vast timber, fishery reserves, precious stones, and agricultural products. However, having vast natural resources does not help the average population due to corruption and inefficiency. 50 percent of Burma’s GDP is derived from agriculture, fishery, and forestry. State manufacturing industry makes 15 percent and the trade and service industry make up the remaining 35 percent of its GDP. Although the country has huge potential in the tourism industry, due to lack of infrastructure and bad international image, it has never realised its full potential and it will take long to reach that level.

Investment in Burma from abroad has declined steadily due to an unfriendly business environment, corruption, political unrest, and sanctions. However, it is estimated that China has bumped up investments in Burma in recent years. It is hard to impossible to figure out any numbers due to the government’s unreliable and restricted economic statistics made available.

Although the Burmese government claims its GDP growth rate to be 10 percent annually, GDP growth rates for 2010 and 2011 are estimated to be 5.5 percent for each year. Its GDP per capita is estimated to be $1,300, its population below the poverty line is 32.5 percent, and its unemployment rate is 5.5 percent. Burma ranks 149th of 156 in economic freedom and ranks 130th of 178 in Human Development Index. Burma’s 2011 inflation rate is 8.9 percent. It has had very high and unpredictable inflation in the past, but for the past few years it has seemed to stabilize.

The Burmese government’s recent steps to reforming and opening up Burma and its economy toward international communities have been seen as a good gesture and a positive move and already started attracting interests and gathering momentum in abroad. However, the road ahead to start capitalizing upon its full potential to benefit its general population will be a rather long one and will have lots of bumps.