Page 39 - myanmar

Strong growth predicted if reforms and investment continue
In many ways, the economy of Myanmar is perfectly positioned for strong economic growth. It shares borders with one-third of the world’s population, has a young and inexpensive workforce and a large domestic market. And it is starting from a low base, with a small economy and per capita GDP by world standards and in comparison to many of its neighbors.
But this is a country that has suffered due to its isolation from world markets under decades of military rule and severe economic sanctions. It is one of the poorest countries in the region, and many people live hand to mouth. Agriculture accounts for between
35 and 40 per cent GDP, mainly rice production, but the country is also a rich source of precious stones and teak.
Because the agriculture sector has been slow to modernize, it remains highly labor intensive, and about 70 per cent of the country’s labor force is working in agriculture. Industry, meanwhile,
has been dominated by state-owned enterprises.
Simply getting things done in Myanmar has been a struggle. Mains electricity is
rare and where it exists, it tends to be unreliable. Internet connections are similarly patchy, and roads are poor; only about a quarter of roads are paved, and public transport
is lacking. In addition, the local currency has been highly volatile, leading to a flight to gold and the US dollar in times of uncertainty.
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