A report released by the International Monetary Fund last week warned that Myanmar’s economy, rapidly growing from the sale of natural gas, is at risk of inflation and “weak economic policies.”
In the report, the IMF estimates that Burma’s economy will grow by about 7 percent in the next fiscal year, spurred on by sales from gas fields operated by France’s Total and Malaysia’s Petronas.
The report, obtained by the Financial Times, states that “Growth has picked up and the balance of payments has improved from gas exports…However, living standards are low, and inflation is increasing…Prospects for sustained growth in real income are constrained by inflation, structural rigidities, weak economic policies and low investment.”
Democratic opposition advocacy groups argue that investment in Myanmar’s resource wealth is used by the junta to fill personal coffers and bankroll the 400,000 standing-army at the expense of the nation’s health and education infrastructure.
Investment by French oil giant Total and British businesses were criticized this week by advocacy group Burma Campaign UK (BCUK). BCUK Director Yvette Mahon chastised the UK government for not supporting an all-out investment ban.
“The UK will have blood on its hands as long as it is linked with investments in Burma, putting money in the generals’ pockets is the same as putting guns in their hands,” said Mahon.
Financial Times: IMF warns Burma on high inflation – 11 Oct
