TODAY

Stable Growth Outlook for Myanmar, East Asia & Pacific in 2016-18

GROWTH in developing East Asia and Pacific, including Myanmar, is expected to remain resilient over the next three year, according to a new World Bank report.

However, the region still faces significant risks to growth, and countries need to takes measures to reduce financial and fiscal vulnerabilities. Over the longer term, the report recommends that countries address constraints to sustained and inclusive growth, including by filling infrastructure gaps, reducing malnutrition and promoting financial inclusion.

The newly released East Asia and Pacific Economic Update expects China to continues it gradual transition to slower, but more sustainable, growth, from 6.7 per cent this year to 6.5 per cent in 2017 and 6.3 per cent in 2018. In the rest of the region, growth is projected to remain stable at 4.8 per cent in 2017 and 5.1 per cent in 2018. Overall, developing East Asia is expected to grow at 5.8 per cent in 2016 and 5.7 per cent in 2017-2018.

In Myanmar, economic growth in 2016-2017 remains strong, though inflation has been high. Growth is projected to rise to 7.8 per cent during this period, whilst inflationary pressures are expected faces emerging challenges to short-term macroeconomic stability. A combination of continued fiscal prudence, enhanced monetary operations, exchange rate flexibility and strengthened banking supervision capacity could help manage these pressures.

“The outlook for developing East Asia and Pacific remains positive, with weakness in global growth and external demand offset by robust domestic consumption and investment”, said Victoria Kwakwa, World Bank Vice President for East Asia and Pacific. “The long-term challenge is to sustain growth  and make it more inclusive, including by shrinking gaps in income and access to public services, especially in China; improving infrastructure across the rest of the region; reducing persistent child malnutrition; and harnessing the potential of technology to stimulate financial inclusion.”

The report offers a comprehensive analysis of the outlook for East Asia and Pacific against a challenging global backdrop, including sluggish growth in advanced economics, subdued prospects in most developing economies and stagnant global trade. The report expects domestic demand to the region. Continued low commodity prices will benefit commodity importers and keep inflation low across most of the region.

In China, growth will moderate as the economy continues to rebalance toward consumption, services and higher-value –added activities, and as excess industrial capacity is reduced, Never the less, tighter labor markets will support continued growth in incomes and private.

Ref: GNLM, 6 October 2016

Dhaka wants New Delhi to facilitate gas imports from Myanmar

BANGLADESH has sought India’s help in importing natural gas from Myanmar, the paper Daily Sun reported October 5.

Country’s state minister for power and energy Nasrul Hamid will meet Indian oil minister Dharmendra Pradhan in New Delhi on October 5 to discuss the issue. “Bangladesh will propose four-nation consortiums to import gas from Myanmar at the meeting on Wednesday,” senior government official Mir Mohammad Aslam Uddin told Daily Sun.

A Bangladeshi delegation will hold a series of meetings on the Turkmenistan-Afghanistan-Pakistan-India gas pipeline, setting up an LNG re-gasification as a joint-venture between Petrobangla and Petronet LNG; and LNG imports from a private-sector Indian firm, Adani, the paper reported.

Myanmar’s gas exports to Thailand and China, its two main customers, have dropped in recent months and Dhaka feels Bangladesh could be a replacement as domestic demand is rising steadily. The government is working to meet the deficit by importing LNG and has begun work on building import infrastructure. In July, Accelerate Energy, Petrobangla and the Governments of Bangladesh signed the final agreement for the construction and operation of Bangladesh’s first LNG import terminal LNG.

Ref: GNLM, 6 October 2016