[Myanmar] Reforms To Push Myanmar Growth To 6%: ADB

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ECONOMY

Reforms to push Myanmar growth to 6%: ADB

Wichit Chaitrong

The Nation

MYANMAR: -- The Asian Development Bank has projected the 6 per cent economic growth for Myanmar this year, against 5.5 per cent for Thailand.

Myanmar's economic prospects are bolstered by recent political reforms and projected increases in gas exports, according to ADB's report released on Thursday.

"Myanmar is making a lot of the right moves to revitalise its economy, laying a foundation for further foreign investment and commodity exports with currency changes, land reforms and tax incentives," said Craig Steffensen, ADB's Thailand country director.

Steffen added that the possible easing of economic sanctions by Europe and the United States would lead to even higher levels of trade and investment. The ADB projects Myanmar 's economy would expand 6.3 per cent next year.

The ADB report showed that the move to a managed float of the kyat, which took effect on April 1, is a promising reform towards exchange rate unification and transparency. This measure will expose inefficiencies in state enterprises and dominate parts of the economy, However, it is necessary that the country undertake further reforms including transparent subsidies and possible privatisation.

As hotels in Myanmar and flights in and out of the country are fully booked now, income from tourism is expected to rise further, said Steffen.

Tourist arrivals last year rose by 26 per cent while gas exports increased by nearly 15 per cent to an estimated value of US$3 billion.

Much of the gas is exported to Thailand.

Meanwhile, growth protection for Thailand is at 5.5 per cent for this and next year, thanks to post-flood reconstruction activities by both private and public sectors, said Luxmon Attapich, ADB's Thailand senior economist.

Downside risks for the economy are Eurozone problem, higher oil prices and threat of natural disasters - floods or drought. ADB does not take into account political factor for Thailand's economic projection, she added.

-- The Nation 2012-04-11