Economy Overview
Since the transition to a civilian government in 2011, Burma has begun an economic overhaul aimed at attracting foreign investment and reintegrating into the global economy. Economic reforms have included establishing a managed float of the Burmese kyat in 2012, re-writing the Foreign Investment Law in 2012 to allow more foreign investment participation, granting the Central Bank operational independence in July 2013, enacting a new Anti-corruption Law in September 2013, and authorizing a small number of foreign banks to open branch offices for limited operations beginning in 2015. The government’s commitment to reform, and the subsequent easing of most Western sanctions, has begun to pay dividends as growth accelerated in 2013 and 2014. Burma’s abundant natural resources, young labor force, and proximity to Asia’s dynamic economies have attracted foreign investment in the energy sector, garment industry, information technology, and food and beverages. Pledged foreign direct investment grew from US$1.4 billion in FY 2012 to US$4.1 billion in FY 2013. Despite these improvements, living standards have not improved for the majority of the people residing in rural areas. Burma remains one of the poorest countries in Asia – nearly one-third of the country’s 51 million people live in poverty. The previous government’s isolationist policies and economic mismanagement have left Burma with poor infrastructure, endemic corruption, underdeveloped human resources, and inadequate access to capital, which will require a major commitment to reverse. The Burmese government has been slow to address impediments to economic development such as insecure land rights, a restrictive trade licensing system, an opaque revenue collection system, and an antiquated banking system. Key benchmarks of sustained economic progress would include modernizing and opening the financial sector, increasing budget allocations for social services, and accelerating agricultural and land reforms.
Agriculture Products
rice, pulses, beans, sesame, groundnuts, sugarcane; fish and fish products; hardwood
Industries
agricultural processing; wood and wood products; copper, tin, tungsten, iron; cement, construction materials; pharmaceuticals; fertilizer; oil and natural gas; garments, jade, gems
Industrial Production Growth Rate
12% (2014 est.)
Labor Force
35.23 million (2014 est.)
Labor Force by Occupation
Agriculture: 70%
Industry: 7%
Services: 23% (2001)
Unemployment Rate
5.2% (2013 est.)
Population Below Poverty Line
32.7% (2007 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: 2.8%
Highest 10%: 32.4% (1998)
Budget
Revenues: $2.675 billion
Expenditures: $4.401 billion (2014 est.)
Central Bank Discount Rate
12% (31 December 2009)
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$12.38 billion (31 December 2013 est.)
Stock of Domestic Credit
$15.75 billion (31 December 2013 est.)
Market Value of Publicly Traded Shares
$NA
Reserves of Foreign Exchange and Gold
$8.727 billion (31 December 2014 est.)
Debt External
$7.367 billion (31 December 2013 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
5.58 (2010 est.)
