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The Star
a day ago
- Business
- The Star
Myanmar recovery dented by devastating quake, World Bank
Prior to the earthquake, which left 3,800 people dead and 207,000 people displaced, the World Bank had forecast a 2% expansion this year. - AFP YANGON: Myanmar's economy is headed for its worst performance since the pandemic as the strife-torn country reels from the impact of a devastating earthquake in March that's estimated to have caused US$11 billion in damage, according to the World Bank. The 7.7 magnitude earthquake on March 28 affected more than 17 million people and wrecked widespread damages to residential buildings, public infrastructure and heritage sites in areas accounting for about one-third of Myanmar's gross domestic product. The impact of the quake still continues to disrupt lives and livelihood, "exacerbating the already very difficult conditions in the affected areas,' the bank said in a report on Thursday (June 12). The dent to economic output due to the earthquake will be equivalent to about 4% of Myanmar's GDP in the fiscal year ending March 2026, the development bank estimated. The economy will contract 2.5% in 2025-26 before rebounding to a growth of 3% the following year due to rebuilding efforts and the low base, it said. Prior to the earthquake, which left 3,800 people dead and 207,000 people displaced in townships including Mandalay and Naypyidaw, the World Bank had forecast a 2% expansion this year. The worst-affected regions are expected to lose about a third of their production between April and September, it said. "The economic aftershocks of the earthquake have struck on the back of ongoing challenges from conflict,' the World Bank said. The South-East Asian nation has been struggling with a civil war, stinging inflation and a shortage of dollars since the military seized power in 2021 February. A raging conflict between rebel groups fighting for independence and the regime has displaced about 3.5 million people, the lender said, citing United Nations estimates. Inflation, which quickened to 34.1% in the year to April, may remain high at around 31% in the current fiscal year due to supply-chain disruptions associated with the quake and conflict-related logistics challenges. The poverty rate may climb 2.8 percentage points from an already high ratio of 31% last year, according to the World Bank. Myanmar's budget deficit is seen widening to 6.9% by the end of March next year, up from 5.1% a year earlier with much of the deficit funding coming from the central bank, the report said. "The earthquake caused significant loss of life and displacement, while exacerbating already difficult economic conditions, further testing the resilience of Myanmar's people' Melinda Good, World Bank Division Director for Thailand and Myanmar said in a statement. "Recovery efforts are essential to help the most vulnerable populations.' - Bloomberg
The Star
2 days ago
- Business
- The Star
‘Economy to shrink 2.5% after quake'
THE country's beleaguered economy is expected to contract by 2.5% in the 2025/26 fiscal year largely due to the devastating impact of a powerful earthquake in late March, the World Bank said in a report. The World Bank said yesterday that direct damages to property and infrastructure from the 7.7 magnitude quake were estimated at US$11bil (RM46.6bil), or 14% of the nation's gross domestic product. 'The earthquake caused significant loss of life and displacement, while exacerbating already difficult economic conditions, further testing the resilience of Myanmar's people,' Melinda Good, division director for Thailand and Myanmar, said. The earthquake could increase the national poverty rate by 2.8 percentage points, pushing more households into poverty, the report stated. A survey before the quake estimated the poverty rate at 31% in 2024. — Reuters
Business Times
2 days ago
- Business
- Business Times
Myanmar recovery dented by devastating quake, World Bank says
[NAYPYIDAW] Myanmar's economy is headed for its worst performance since the pandemic as the strife-torn country reels from the impact of a devastating earthquake in March that's estimated to have caused US$11 billion in damage, according to the World Bank. The 7.7 magnitude earthquake on Mar 28 affected more than 17 million people and wrecked widespread damages to residential buildings, public infrastructure and heritage sites in areas accounting for about one-third of Myanmar's gross domestic product. The impact of the quake still continues to disrupt lives and livelihood, 'exacerbating the already very difficult conditions in the affected areas,' the bank said in a report Thursday. The dent to economic output due to the earthquake will be equivalent to about 4 per cent of Myanmar's GDP in the fiscal year ending March 2026, the development bank estimated. The economy will contract 2.5 per cent in 2025-2026 before rebounding to a growth of 3 per cent the following year due to rebuilding efforts and the low base, it said. Prior to the earthquake, which left 3,800 people dead and 207,000 people displaced in townships including Mandalay and Naypyidaw, the World Bank had forecast a 2 per cent expansion this year. The worst-affected regions are expected to lose about a third of their production between April and September, it said. 'The economic aftershocks of the earthquake have struck on the back of ongoing challenges from conflict,' the World Bank said. The nation has been struggling with a civil war, stinging inflation and a shortage of US dollars since the military seized power in 2021 February. A raging conflict between rebel groups fighting for independence and the regime has displaced about 3.5 million people, the lender said, citing United Nations estimates. Inflation, which quickened to 34.1 per cent in the year to April, may remain high at around 31 per cent in the current fiscal year due to supply-chain disruptions associated with the quake and conflict-related logistics challenges. The poverty rate may climb 2.8 percentage points from an already high ratio of 31 per cent last year, according to the World Bank. Myanmar's budget deficit is seen widening to 6.9 per cent by the end of March next year, up from 5.1 per cent a year earlier with much of the deficit funding coming from the central bank, the report said. 'The earthquake caused significant loss of life and displacement, while exacerbating already difficult economic conditions, further testing the resilience of Myanmar's people' Melinda Good, World Bank Division Director for Thailand and Myanmar said in a statement. 'Recovery efforts are essential to help the most vulnerable populations.' BLOOMBERG
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
World Bank says earthquake worsens Myanmar's economic decline
Myanmar is reeling in the aftermath of the earthquake that struck in March. (AP pic) WASHINGTON : Myanmar's beleaguered economy is expected to contract by 2.5% in the 2025/26 fiscal year largely due to the devastating impact of a powerful earthquake in late March, the World Bank said in a report on Thursday. The World Bank said direct damages to property and infrastructure from the 7.7 magnitude quake were estimated at US$11 billion, or 14% of the nation's gross domestic product, estimating that economic output would be about US$2 billion lower than it otherwise would have been because of the quake. The quake affected more than 17 million people, with nine million severely impacted, the World Bank said. The death toll has topped 3,700, according to Myanmar's ruling junta. 'The earthquake caused significant loss of life and displacement, while exacerbating already difficult economic conditions, further testing the resilience of Myanmar's people,' Melinda Good, Division Director for Thailand and Myanmar, said in a statement. 'Recovery efforts are essential to help the most vulnerable populations.' A junta spokesman did not respond to a call from Reuters seeking comment on the report. In December, the World Bank had projected Myanmar's economy would shrink 1% in the 2024/25 fiscal year that ended in March due to the severe flooding in the country. Myanmar has been in turmoil since the military seized power in a coup in February 2021, sparking a civil war. There have been international efforts to stall the conflict, but rebels have accused the junta of breaching a ceasefire called to allow relief efforts to reach earthquake-affected areas. The hardest-hit regions of Mandalay and Naypyidaw were expected to lose up to one-third of their production between April and September before a partial recovery in the second half of the fiscal year, the World Bank said. The earthquake could increase the national poverty rate by 2.8 percentage points, pushing more households into poverty, the report stated. A survey before the quake estimated the poverty rate at 31% in 2024. 'Myanmar's compounding crises have put household coping mechanisms under severe stress,' said Kim Edwards, Senior Economist and Program Leader for Thailand and Myanmar.
The Star
2 days ago
- Business
- The Star
Earthquake worsens Myanmar's economic decline, World Bank says
FILE PHOTO: A woman carries a bag of produce on her head at the Da Nyin Gone vegetable wholesale market in Yangon on September 19, 2023. The earthquake could increase the national poverty rate by 2.8 percentage points, pushing more households into poverty, the World Bank predicts. - AFP YANGON: Myanmar's beleaguered economy is expected to contract by 2.5 per cent in the 2025/26 fiscal year largely due to the devastating impact of a powerful earthquake in late March, the World Bank said in a report on Thursday (June 12). The World Bank said direct damages to property and infrastructure from the 7.7 magnitude quake were estimated at US$11 billion, or 14 per cent of the nation's gross domestic product, estimating that economic output would be about US2 billion lower than it otherwise would have been because of the quake. The quake affected more than 17 million people, with nine million severely impacted, the World Bank said. The death toll has topped 3,700, according to Myanmar's ruling junta. "The earthquake caused significant loss of life and displacement, while exacerbating already difficult economic conditions, further testing the resilience of Myanmar's people," Melinda Good, Division Director for Thailand and Myanmar, said in a statement. "Recovery efforts are essential to help the most vulnerable populations." A junta spokesman did not respond to a call from Reuters seeking comment on the report. In December, the World Bank had projected Myanmar's economy would shrink one per cent in the 2024/25 fiscal year that ended in March due to the severe flooding in the country. Myanmar has been in turmoil since the military seized power in a coup in February 2021, sparking a civil war. There have been international efforts to stall the conflict, but rebels have accused the junta of breaching a ceasefire called to allow relief efforts to reach earthquake-affected areas. The hardest-hit regions of Mandalay and Naypyidaw were expected to lose up to one-third of their production between April and September before a partial recovery in the second half of the fiscal year, the World Bank said. The earthquake could increase the national poverty rate by 2.8 percentage points, pushing more households into poverty, the report stated. A survey before the quake estimated the poverty rate at 31 per cent in 2024. "Myanmar's compounding crises have put household coping mechanisms under severe stress," said Kim Edwards, Senior Economist and Programme Leader for Thailand and Myanmar. - Reuters
