Myanmar's economy expects to grow 7.4pc in next fiscal

The ASEAN+3 Macroeconomic Research Office (AMRO) has forecast that Myanmar's economy is expected to grow 7.4 per cent in this new fiscal year 2018-19 which started on October 1.

The AMRO has recently established the annual consultation report on Myanmar, based on its annual consultation visit to Myanmar from May 15 to 25 and data available up to June 29 this year.

The research office has forecast that the economy has reached on a gradual recovery path in last FY 2017-18 as it grew to 6.8 per cent in FY 2017-18, up from 5.9 per cent in FY 2016-17, reports Xinhua.

The country's economic recovery will be supported by sustained inflow of foreign direct investment, improving investment sentiment and continuing strong growth in garment exports and domestic consumption, the report said.

Also, inflation rate is forecast to stabilise at 5.0 per cent in this FY 2018-19, but inflation may be boosted on account of depreciation when the stronger US dollar will exert downward pressure on the kyat.

Moreover, structural reforms including hard and soft infrastructure and the regulatory and legal environment are reportedly needed to develop a market-based economy targeting inclusive economic growth.

The accelerating structural reforms will boost private sector development and upgrading the key infrastructure including electricity, and logistics could provide an attractive environment for investment and trade in the country, the report added.

The AMRO also urged to upgrade the country's education system, focusing on vocational training to provide the necessary skill sets and talents to meet the needs of the economy.

The AMRO, an international organisation, is established to contribute to securing the economic and financial stability of the ASEAN+3 regions, comprising of ASEAN members and China, Japan and South Korea.