The government is expecting the economy to grow by 7 percent between October 1, 2019 and September 30, 2020 compared to loftier forecasts of 7.6pc growth for the economy in the previous fiscal year.

This is mainly due to a slowing world economy, which is anticipated to have a negative impact on trade and investment in Myanmar.

However, GDP per capita is likely to increase, with growth activities taking place in the small and medium-sized enterprise sector. More are expected to find jobs as a result of development in the industrial zones, and productivity should also increase.

There should also be more expansion in the construction, infrastructure and low-cost property segments and focus will be placed on the development of domestic transportation infrastructure, such as the Yangon Skyway, Thandwe Airport and interstate ring-roads to boost tourism.

With higher government spending on the cards, the budget deficit for this fiscal year is expected to rise by 40 percent to K6.7 trillion at the Union level. In the states and regions, the deficit is expected to rise by almost 18pc, to K2.1 trillion this year.

The garment manufacturing industry will also receive more support and more Public Private Partnerships with state-owned factories can be expected.

Offshore gas production will likely increase with more tenders in the sector scheduled for this year.

Exports should remain at current levels or increase, with a higher focus on technology in the agriculture and livestock sector expected this fiscal year. This should result in better quality crops and healthier livestock, which will add value to local goods and raise demand from overseas.

Meanwhile, more foreign direct investments are expected as further development takes place in the China-Myanmar Economic Corridor.

The government has also eased the foreign loan restriction, under which Myanmar will be permitted to borrow up to K9 trillion internationally compared to a maximum of K7.2 trillion in the previous fiscal year.

Inflation in fiscal 2019-20 should rise to 6.7pc compared to 4.8pc in the previous year.

– Translated

Source: https://www.mmtimes.com/news/government-tapers-growth-forecast-fiscal-2019-20.html