YANGON — The World Bank’s forecast on Jan. 30 that Myanmar’s economy will grow by more than 7% annually for the next three years appears optimistic in some quarters. In the latest issue of its Myanmar Economic Monitor, the World Bank said that while growth would most likely be around 6.5% for fiscal 2017 (ending March 31), it would then accelerate on increased investment in infrastructure and sectors such as hospitality. The adverse effects of floods in 2015 would wear off, particularly in the agricultural sector, which accounts for about 60% of the workforce and nearly 40% of the economy. In 2015/16, the final year of the previous administration headed by President Thein Sein, Myanmar’s annual growth was 7.3% — a significant increase from the 5.5% reached in 2011/12, the first year of Thein Sein’s presidency. “The World Bank forecast is somewhat at odds with the mood in the local business community,” said Stuart Larkin, a Yangon-based economic consultant.
YANGON – In a rare discussion of the party’s economic thinking, Han Tha Myint said the NLD wants to press on with the liberalization of the banking sector. In October 2014, nine foreign banks were awarded restricted licenses to operate in Myanmar as part of a gradual opening up to foreign investment. Foreign banks are limited to a single branch each, cannot serve individuals or locally owned companies, and are prohibited from making loans in kyat, the local currency. Han Tha Myint maintained the NLD would loosen these restrictions, saying, “It will be much better for the economy.”