Asia and Oceania

Burma
Last reviewed: 02 December 2008

Country information

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ECONOMY

Basic Economic Facts

GDP: US$16.3 billion (2007 EIU estimate)
GDP per head: US$ 334 (estimate-07)
GDP (PPP) per head: US$ 436
Annual Growth: 3.4% (2007 estimate)
Inflation: 39% (2007 estimate)
Major Industries: Agriculture 50%, Industrial 15%, Services 35% (2007 estimate)
Major trading partners: Thailand, China, Singapore, India
Exchange Rate: £1= kyats 2114.5 (at free market rate), kyats 11.10 (at official rate) (in 2008)

As a result of economic mismanagement, and despite substantial natural resources, Burma is a poor country. Fundamental problems in the economy remain unresolved, and the macroeconomic situation remains unstable. The banking sector is fragile and the small private sector struggles with an unpredictable policy environment and a multitude of market distortions. Inflation remains high.

Despite inflation, structural rigidities, weak economic policies, and low investment the Burmese economy is thought to be growing (although at a much lower rate than Burmese official figures) largely due to growth of gas exports.
However, unless a comprehensive programme of stabilisation and reform is undertaken, prospects for sustainable growth remain bleak and social indicators will continue their downward slide.

In October 2006 the Financial Action Task Force removed Burma from its list of non-cooperative countries citing the progress made in implementing anti money laundering systems. There have also been efforts to tackle corruption in some areas including the customs service.