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IMF projects muted growth for 2021 economy

Myanmar’s economy is expected to post muted growth this year due to the impact of COVID-19, but should rebound next year, the IMF said. In a statement, IMF projected this year’s growth to slow down to 0.5 percent, from a projected 3.2pc last year. The economic fallout will be felt by lower income groups, SMEs and those in conflict regions.

The economy is expected to recover next year, when it is projected to grow 7.9pc on strong base effects, IMF added, though it also said it expects poverty to go up. At the same time, permanent losses in medium-term output are expected, raising concerns of increased poverty. The IMF’s growth forecast is more pessimistic than that of the Asian Development Bank, which earlier this year projected Myanmar’s growth to have slowed to 1.8 pct in the fiscal year ending September 2020.

ADB expected the economy to bounce back to 6 pct this year. The IMF, in the statement, also announced that its executive board has approved the release of financial assistance amounting to SDR 258.4 million (US$372 million) to help Myanmar minimise the economic and social impacts of the pandemic. The IMF assistance will aid Myanmar’s COVID-19 policy measures aimed at minimising the pandemic’s economic and social impact while supporting the vulnerable.

Source: Myanmar Times

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