Inflation is estimated to be around 11 per cent in this financial year according to the World Bank’s Myanmar Economic Monitor. It has remained constant at around 5 to 6 per cent in recent years. Average inflation was expected between 5 to 6 per cent but a double-digit inflation could lead to worried and dangerous consequences, economists are warning. Inflation was 5.7 per cent in 2013, 5.9 per cent in 2014 and 11% Inflation for Current Financial Year 11.3 per cent in 2015 financial years.
Myanmar’s economy specialist, Myint Thaung said, “International Money Fund (IMF) estimates that the country growth to be 8.3 per cent in 2015, however, the major crisis is the currency unsteadiness. The exchange rate plays an important role as an indicator for economic growth. If the economy is concrete, the exchange rate will be stable. This is critical”.
Myanmar’s currency, Kyat is still hard to exchange with other regional currencies.
“Thai, Singaporean and Malaysian currencies can be exchanged into Kyat in Myanmar but Myanmar Kyat cannot in Thailand or others as our currency is not steady and do not have a control over convertible floating exchange rate,” he continued. “Some of the imports are needless like cars, luxury items and many extravagances. We need to think about if these goods are really required in the country. Myanmar trade policy is weak and require to be sturdy and powerful.” Growth for this financial year is predicted at 6.5 per cent, 2 per cent lower than that of last year, according to the World Bank recently.
