World Bank Downgrades Myanmar Economic Outlook

The World Bank has projected that Myanmar's economy will contract by 1% in the fiscal year ending March 2025, a significant downgrade from an earlier forecast of 1% growth, primarily due to ongoing conflict, severe flooding from Typhoon Yagi, and high inflation. Nearly 25% of the population is facing acute food insecurity, exacerbated by inflation rates expected to average 26% this fiscal year. The economic downturn is affecting multiple sectors, with agriculture, manufacturing, and services all projected to shrink due to shortages of raw materials, electricity, and weak domestic demand. Since the military coup in 2021, which disrupted a decade of democratic reforms, the country has experienced escalating violence and instability, leading to a sharp decline in foreign investment. Migration has become a critical coping strategy for many, as workers seek better opportunities abroad, further straining domestic labor markets. The World Bank emphasizes the urgent need for recovery efforts to support vulnerable populations amidst these compounding crises.