The war-torn nation of Myanmar is already struggling under the weight of high inflation, a falling currency, and power and labour shortages. The World Bank predicts that the country's gross domestic product will contract this fiscal year.

In a study released on Wednesday by the World Bank, the situation is predicted to worsen in the aftermath of typhoon Yagi in September. The bank predicts a one per cent contraction in Myanmar's GDP for the current fiscal year ending in March 2025. 
 
That is down from an earlier projection of 1 per cent growth. The military junta projected a 3.8 per cent growth rate. The World Bank estimates that by 2025, the country's GDP will have contracted by 11 per cent from 2019 levels. 
 
Shocks from a 2021 military coup that sparked a civil war in the Southeast Asian nation are to blame for the drops. 
 
The study showed manufacturing, agriculture, and service sectors are being negatively impacted. This is weighed down by the ongoing power outages and shortages of imported raw supplies.

The World Bank said, "A further escalation in conflict, including in the run-up to possible elections in 2025, or another severe natural disaster could depress output across a range of sectors." 
 
The bank added, "If that happens, longer and broader disruptions may follow and plunge households deeper into poverty."

Additionally, the report claimed that supply lines and border trade have been disrupted. This is due to the current warfare that is affecting more than half of Myanmar's 330 townships. Part of the reason for the gloomy forecast is the internal scarcity of human capital. 
 
Labour shortages have been driven by the increasing outbound migration from Myanmar in the past several years. According to the United Nations, approximately 6 per cent of the population, or 3.5 million individuals, have been displaced since October 2023.

(With the inputs from the agencies)

The war-torn nation of Myanmar is already struggling under the weight of high inflation, a falling currency, and power and labour shortages. The World Bank predicts that the country's gross domestic product will contract this fiscal year.

The war-torn nation of Myanmar is already struggling under the weight of high inflation, a falling currency, and power and labour shortages. The World Bank predicts that the country's gross domestic product will contract this fiscal year. In a study released on Wednesday by the World Bank, the situation is predicted to worsen in the aftermath of typhoon Yagi in September. The bank predicts a one per cent contraction in Myanmar's GDP for the current fiscal year ending in March 2025. That is down from an earlier projection of 1 per cent growth. The military junta projected a 3.8 per cent growth rate. The World Bank estimates that by 2025, the country's GDP will have contracted by 11 per cent from 2019 levels. Shocks from a 2021 military coup that sparked a civil war in the Southeast Asian nation are to blame for the drops. The study showed manufacturing, agriculture, and service sectors are being negatively impacted. This is weighed down by the ongoing power outages and shortages of imported raw supplies. The World Bank said, "A further escalation in conflict, including in the run-up to possible elections in 2025, or another severe natural disaster could depress output across a range of sectors." The bank added, "If that happens, longer and broader disruptions may follow and plunge households deeper into poverty." Additionally, the report claimed that supply lines and border trade have been disrupted. This is due to the current warfare that is affecting more than half of Myanmar's 330 townships. Part of the reason for the gloomy forecast is the internal scarcity of human capital. Labour shortages have been driven by the increasing outbound migration from Myanmar in the past several years. According to the United Nations, approximately 6 per cent of the population, or 3.5 million individuals, have been displaced since October 2023. (With the inputs from the agencies)

World Bank predicts Myanmar's economy to contract this year

Myanmar's garment industry is a rare bright spot in an economy severely impacted by the military coup of 2021 and ongoing civil conflict. Despite the political turmoil, the sector's export earnings reached $7.6 billion in 2022, up from $5.7 billion in 2019.

A significant portion of these exports goes to the European Union, with brands like Adidas, H&amp;M, and bestsellers continuing to source from Myanmar. However, the industry’s growth has not translated into better conditions for workers who face harsh realities.

Workers like Wai Wai are among the thousands labouring in Myanmar’s garment factories, earning as little as $3 a day. With daily wages barely covering basic expenses like rent and food, many workers skip meals to send money back home to family members affected by conflict in other regions.

Wai Wai spoke to AFP and said, "Before the coup, we can work overtime until 9 pm and earn extra money for personal expenses. But the salary we earn right now is for supporting our family, and the money left is only enough for food; we don't have any extra money."

Despite the country’s export boom, factory workers struggle with rising costs, including cotton prices, which have more than doubled, and frequent power shortages that hinder productivity.

Thin Thin Khine, another garment factory worker, spoke to AFP. "In the past, we could buy new 2 or 3 [pieces of] clothes every month, but now we can't afford to buy new clothes, cosmetics or things for personal care. Food is more important than anything, and we can only spend money on food."

The situation has worsened since the military coup, with reports of widespread worker rights violations, including bans on unions and arrests of union leaders. Additionally, a conscription law enacted this year has raised fears among workers, particularly women, who are at risk of being drafted into the military.

While global companies like Bestsellers have continued sourcing from Myanmar, they face increasing pressure to balance operations with ethical concerns. The ongoing challenges in Myanmar’s garment sector highlight the complex intersection of economic growth, worker exploitation, and political instability.

Myanmar's garment industry is a rare bright spot in an economy severely impacted by the military coup of 2021 and ongoing civil conflict. Despite the political turmoil, the sector's export earnings reached $7.

Myanmar's garment industry is a rare bright spot in an economy severely impacted by the military coup of 2021 and ongoing civil conflict. Despite the political turmoil, the sector's export earnings reached $7.6 billion in 2022, up from $5.7 billion in 2019. A significant portion of these exports goes to the European Union, with brands like Adidas, H&M, and bestsellers continuing to source from Myanmar. However, the industry’s growth has not translated into better conditions for workers who face harsh realities. Workers like Wai Wai are among the thousands labouring in Myanmar’s garment factories, earning as little as $3 a day. With daily wages barely covering basic expenses like rent and food, many workers skip meals to send money back home to family members affected by conflict in other regions. Wai Wai spoke to AFP and said, "Before the coup, we can work overtime until 9 pm and earn extra money for personal expenses. But the salary we earn right now is for supporting our family, and the money left is only enough for food; we don't have any extra money." Despite the country’s export boom, factory workers struggle with rising costs, including cotton prices, which have more than doubled, and frequent power shortages that hinder productivity. Thin Thin Khine, another garment factory worker, spoke to AFP. "In the past, we could buy new 2 or 3 [pieces of] clothes every month, but now we can't afford to buy new clothes, cosmetics or things for personal care. Food is more important than anything, and we can only spend money on food." The situation has worsened since the military coup, with reports of widespread worker rights violations, including bans on unions and arrests of union leaders. Additionally, a conscription law enacted this year has raised fears among workers, particularly women, who are at risk of being drafted into the military. While global companies like Bestsellers have continued sourcing from Myanmar, they face increasing pressure to balance operations with ethical concerns. The ongoing challenges in Myanmar’s garment sector highlight the complex intersection of economic growth, worker exploitation, and political instability.

Sewing for a living: Low wages plague Myanmar's garment sector

Coronavirus pandemic has pushed several economies into a deep recession. The outbreak has had a big impact on the economic, social, and political fronts in many parts of the world. In Myanmar, the virus has dragged the poor families to an edge. Watch report.

Myanmar's coronavirus crisis: Virus drags poor families to the edge

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World Bank predicts Myanmar's economy to contract this year

Sewing for a living: Low wages plague Myanmar's garment sector

Myanmar's coronavirus crisis: Virus drags poor families to the edge