Editing Economy of Myanmar (section)

==History==

===Classical era===
Burma has been the main trade route between China and India since 100 BC. The [[Mon Kingdom]] of lower Burma served as important trading centre in the [[Bay of Bengal]]. The majority of the population was involved in rice production and other forms of [[agriculture]].<ref name="tay">{{Cite book |last=Taylor |first=Robert H. |title=The State in Myanmar |publisher=NUS Press |year=2009 |isbn=978-9971-69-466-1 |pages=38–40}}</ref> Burma used silver as a medium of exchange.<ref name="tay" /> All land was technically owned by the Burmese monarch.<ref name="stein">{{Cite book |last=Steinberg |first=David I. |url=https://archive.org/details/burmastateofmyan0000stei/page/125 |title=Burma, the state of Myanmar |publisher=Georgetown University Press |year=2001 |isbn=978-0-87840-893-1 |pages=[https://archive.org/details/burmastateofmyan0000stei/page/125 125–127]}}</ref> Exports, along with oil wells, gem mining and teak production were controlled by the monarch.<ref name="stein" /> Burma was vitally involved in the [[Indian Ocean]] trade.<ref name="tay" /> Logged teak was a prized export that was used in European shipbuilding because of its durability, and became the focal point of Burmese exports from the 1700s to the 1800s.<ref>{{Cite book |last=Goodman |first=Michael K. |title=Consuming space: placing consumption in perspective |publisher=Ashgate Publishing, Ltd. |year=2010 |isbn=978-0-7546-7229-6 |pages=241}}</ref>

Under the monarchy, the economy of Myanmar had been one of redistribution, a concept embedded in local society, religion, and politics ([[Dāna]]). The state set the prices of the most important commodities. Agrarian self-sufficiency was vital, while trade was only of secondary importance.<ref>{{Cite web|title=Myanmar - The initial impact of colonialism|url=https://www.britannica.com/place/Myanmar|access-date=2021-10-07|website=Encyclopedia Britannica|language=en|archive-date=4 May 2021|archive-url=https://web.archive.org/web/20210504062055/https://www.britannica.com/place/Myanmar|url-status=live}}</ref>

===British Burma (1885–1948)===
{{Further|British rule in Burma}}

Under the British administration, the people of Burma were at the bottom of social hierarchy, with Europeans at the top, Indians, Chinese, and Christianized minorities in the middle, and Buddhist Burmese at the bottom.<ref name=":02">{{Cite book |last=Thant Myint-U. |title=The river of lost footsteps : histories of Burma |date=2006 |publisher=Farrar, Straus and Giroux |isbn=978-0-374-16342-6 |edition=1st |location=New York |oclc=65064707}}</ref> Integrated into the world economy by force, economic growth in Burma was driven by the extractive industries and [[cash crop]] agriculture, and the country had the second-highest GDP per capita in Southeast Asia. However, much of the wealth was concentrated in the hands of Europeans. The country became the world's largest exporter of rice, mainly to European markets, while other colonies like India suffered mass starvation.<ref>{{Cite book |last=Davis, Mike |title=Late Victorian holocausts: El Niño famines and the making of the third world |date=2001 |publisher=Verso |isbn=1-85984-739-0 |location=London |oclc=45636958}}</ref> The British followed the ideologies of [[Social Darwinism]] and the free market, and opened up the country to a large-scale immigration with Rangoon exceeding New York City as the greatest immigration port in the world in the 1920s. Historian Thant Myint-U states, "This was out of a total population of only 13 million; it was equivalent to the United Kingdom today taking 2 million people a year." By then, in most of the largest cities in Burma, [[Rangoon]], [[Akyab]], [[Pathein|Bassein]] and [[Moulmein]], the Indian immigrants formed a majority of the population. The Burmese under British rule felt helpless, and reacted with a "racism that combined feelings of superiority and fear".<ref name=":02" />

Crude oil production, an indigenous industry of [[Yenangyaung]], was taken over by the British and put under [[Burmah Oil]] monopoly. British Burma began exporting crude oil in 1853.<ref>{{Cite web |last=Total |title=Oil and Gas in Myanmar |url=http://burma.total.com/myanmar-en/oil-and-gas-in-myanmar/oil-and-gas-in-myanmar-900130.html |url-status=dead |archive-url=https://web.archive.org/web/20150415084151if_/http://burma.total.com/myanmar-en/oil-and-gas-in-myanmar/oil-and-gas-in-myanmar-900130.html |archive-date=15 April 2015}}</ref> It produced 75% of the world's teak.<ref name="steinberg">{{Cite book |last=Steinberg |first=David I. |url=https://books.google.com/books?id=CSTuWZ0BMmMC |title=Burma: The State of Myanmar |date=2002 |publisher=Georgetown University Press |isbn=978-1-58901-285-1 |page=xi}}</ref> The wealth was however, mainly concentrated in the hands of Europeans. In the 1930s, agricultural production fell dramatically as international rice prices declined and did not recover for several decades.<ref>{{Cite journal |last=Booth, Anne |date=Spring 2003 |title=The Burma Development Disaster in Comparative Historical Perspective |url=http://www.soas.ac.uk/sbbr/editions/file64274.pdf |journal=SOAS Bulletin of Burma Research |volume=1 |issue=1 |issn=1479-8484 |access-date=30 January 2021 |archive-date=9 August 2007 |archive-url=https://web.archive.org/web/20070809043455/http://www.soapy-massage.com/thai-soapy-massage-turkish-bath-house.html |url-status=dead }}</ref>

During the Japanese invasion of Burma in World War II, the British followed a [[scorched earth]] policy. They destroyed the major government buildings, oil wells and mines for tungsten, tin, lead and silver to keep them from the Japanese. Myanmar was bombed extensively by the Allies. After independence, the country was in ruins with its major infrastructure completely destroyed. With the loss of India, Burma lost relevance and obtained independence from the British. After a parliamentary government was formed in 1948, Prime Minister U Nu embarked upon a policy of nationalisation and the state was declared the owner of all land. The government tried to implement an eight-year plan partly financed by injecting money into the economy which caused some inflation.<ref>{{Cite web |last=Watkins |first=Thayer |title=Political and Economic History of Myanmar (Burma) Economics |url=http://www2.sjsu.edu/faculty/watkins/burma.htm |access-date=8 July 2006 |publisher=San Jose State University |archive-date=26 May 2006 |archive-url=https://web.archive.org/web/20060526144053/http://www2.sjsu.edu/faculty/watkins/burma.htm |url-status=dead }}</ref>

===Post-independence and under U Nu and Ne Win (1948–1988)===
After a parliamentary government was formed in 1948, Prime Minister [[U Nu]] embarked upon a policy of [[nationalisation]]. He attempted to make Burma a [[welfare state]] by adopting [[central planning]] measures. By the 1950s, rice exports had decreased by two-thirds and mineral exports by over 96%. Plans were implemented in setting up light consumer industries by private sector.<ref>{{Cite web |last=Watkins |first=Thayer |title=Political and Economic History of Myanmar (Burma) Economics |url=http://www2.sjsu.edu/faculty/watkins/burma.htm |access-date=8 July 2006 |publisher=San José State University |archive-date=26 May 2006 |archive-url=https://web.archive.org/web/20060526144053/http://www2.sjsu.edu/faculty/watkins/burma.htm |url-status=dead }}</ref> The [[1962 Burmese coup d'état]] was followed by an economic scheme called the [[Burmese Way to Socialism]], a plan to nationalise all industries, with the exception of agriculture.  The catastrophic program turned Burma into one of the world's most impoverished countries.<ref name="ruin">{{Cite news |last=Tallentire |first=Mark |date=28 September 2007 |title=The Burma road to ruin |work=The Guardian |location=London |url=https://www.theguardian.com/world/2007/sep/28/burma.uk |access-date=1 May 2010 |archive-date=4 March 2016 |archive-url=https://web.archive.org/web/20160304081122/https://www.theguardian.com/world/2007/sep/28/burma.uk |url-status=live }}</ref><ref name="woodsome">{{Cite news |last=Kate Woodsome |title='Burmese Way to Socialism' Drives Country into Poverty |url=http://www.voanews.com/english/archive/2007-10/2007-10-04-voa10.cfm?CFID=117290760&CFTOKEN=64840153&jsessionid=6630167e8fd1b43b9eef18506362225e1f2d |url-status=dead |archive-url=https://archive.today/20121208220245/http://www.voanews.com/english/archive/2007-10/2007-10-04-voa10.cfm?CFID=117290760&CFTOKEN=64840153&jsessionid=6630167e8fd1b43b9eef18506362225e1f2d |archive-date=2012-12-08}}</ref> Burma was classified as a [[least developed country]] by the [[United Nations]] in 1987.<ref>{{Cite web |year=2005 |title=List of Least Developed Countries |url=https://www.un.org/special-rep/ohrlls/ldc/list.htm |url-status=dead |archive-url=https://web.archive.org/web/20131026045553/http://www.un.org/special-rep/ohrlls/ldc/list.htm |archive-date=26 October 2013 |publisher=UN-OHRLLS}}</ref>

===Rule of the generals (1988–2011)===
After 1988, the regime retreated from a [[command economy]]. It permitted modest expansion of the private sector, allowed some foreign investment, and received much needed foreign exchange.<ref>{{Cite book |last=Stephen Codrington |title=Planet geography |publisher=Solid Star Press |year=2005 |isbn=0-9579819-3-7 |page=559}}</ref> [[Than Shwe]] advocated for some [[deregulation]] economic policies, despite his relaxation of some restrictions on Burma's economy, his economic policies have been often criticized as ill-planned.<ref>https://web.archive.org/web/20100809000937/http://www.shanland.org/oldversion/No.6.pdf</ref><ref>{{cite journal | url=https://openyls.law.yale.edu/handle/20.500.13051/5724 | title=Energy Security:, Security for Whom? | journal=Yale Human Rights and Development Law Journal | date=18 February 2014 | last1=Smith | first1=Matthew | last2=Htoo | first2=Naing }}</ref> Shwe relaxed some state control over the economy, and was a supporter of Burma's participation in the [[Association of South East Asian Nations]] (ASEAN). He also oversaw a large crackdown on corruption, which saw the sackings of a number of cabinet ministers and regional commanders in 1997. Shwe advocated for Crony capitalism.<ref>{{cite news | url=https://www.economist.com/special-report/2013/05/23/democracy-on-prescription | title=Democracy on prescription | newspaper=The Economist }}</ref> The economy was rated in 2009 as [[List of countries by economic freedom|the least free in Asia]] (tied with [[North Korea]]).<ref name="freedom">{{Cite web |title=Burma Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption |url=http://www.heritage.org/index/country/Burma |access-date=16 January 2018 |website=Heritage.org |archive-date=19 November 2011 |archive-url=https://web.archive.org/web/20111119173945/http://www.heritage.org/Index/Country/Burma |url-status=unfit }}</ref> All basic market institutions are suppressed.<ref name="freedom" /><ref name="turnell" /> Private enterprises were often co-owned or indirectly owned by state. The corruption watchdog organisation [[Transparency International]] in its 2007 [[Corruption Perceptions Index]] released on 26 September 2007 ranked Burma the most corrupt country in the world, tied with [[Somalia]].<ref>{{Cite web |title=Research – CPI – Overview |url=http://www.transparency.org/policy_research/surveys_indices/cpi/2007 |access-date=16 January 2018 |website=Transparency.org |archive-date=28 April 2008 |archive-url=https://web.archive.org/web/20080428203145/http://www.transparency.org/policy_research/surveys_indices/cpi/2007 |url-status=dead }}</ref>

The national currency is the [[kyat]]. Burma currently has a [[dual exchange rate]] system similar to [[Cuba]].<ref>{{Cite news |last=Sean Turnell |date=2 May 2008 |title=The rape of Burma: where did the wealth go? |work=The Japan Times |url=http://search.japantimes.co.jp/cgi-bin/eo20080502a1.html |access-date=15 February 2009 |archive-date=14 July 2012 |archive-url=https://archive.today/20120714104011/http://www.japantimes.co.jp/text/eo20080502a1.html%23.UAFMe6go9Rw |url-status=live }}</ref> The market rate was around two hundred times below the government-set rate in 2006.<ref name="turnell">{{Cite web |last=Sean Turnell |date=29 March 2006 |title=Burma's Economic Prospects – Testimony before the Senate Foreign Relations Subcommittee on East Asian and Pacific Affairs |url=http://foreign.senate.gov/testimony/2006/TurnellTestimony060329.pdf |url-status=dead |archive-url=https://web.archive.org/web/20100106125904/http://foreign.senate.gov/testimony/2006/TurnellTestimony060329.pdf |archive-date=6 January 2010 |access-date=22 January 2010}}</ref> In 2011, the Burmese government enlisted the aid of the [[International Monetary Fund]] to evaluate options to reform the current exchange rate system, to stabilise the domestic foreign exchange trading market and reduce economic distortions.<ref>{{Cite web |last=Feng Yingqiu |date=1 August 2011 |title=Myanmar starts to deal with official forex rate |url=http://news.xinhuanet.com/english2010/business/2011-08/01/c_131022439.htm |archive-url=https://web.archive.org/web/20121108004143/http://news.xinhuanet.com/english2010/business/2011-08/01/c_131022439.htm |url-status=dead |archive-date=8 November 2012 |access-date=8 August 2011 |website=Xinhua}}</ref> The dual exchange rate system allows for the government and state-owned enterprises to divert funds and revenues, while also giving the government more control over the local economy and making it possible to temporarily subdue inflation.<ref>{{Cite news |last=McCartan |first=Brian |date=20 August 2008 |title=Myanmar exchange scam fleeces UN |work=Asia Times |url=http://www.atimes.com/atimes/Southeast_Asia/JH20Ae01.html |url-status=unfit |access-date=8 August 2011 |archive-url=https://web.archive.org/web/20081202112402/http://www.atimes.com/atimes/Southeast_Asia/JH20Ae01.html |archive-date=2 December 2008}}</ref><ref name="wsj">{{Cite news |date=8 August 2011 |title=Myanmar Considers Foreign-Exchange Overhaul |work=The Wall Street Journal |url=https://www.wsj.com/articles/SB10001424053111904007304576493940226278686 |access-date=8 August 2011 |archive-date=11 March 2016 |archive-url=https://web.archive.org/web/20160311124653/http://www.wsj.com/articles/SB10001424053111904007304576493940226278686 |url-status=live }}</ref>

[[Inflation]] averaged 30.1% between 2005 and 2007.<ref name="freedom" /> In April 2007, the [[National League for Democracy]] organised a two-day workshop on the economy. The workshop concluded that skyrocketing inflation was impeding economic growth. "Basic commodity prices have increased from 30% to 60% since the military regime promoted a pay rise for government workers in April 2006," said Soe Win, the moderator of the workshop. "Inflation is also correlated with corruption." Myint Thein, an NLD spokesperson, added: "Inflation is the critical source of the current economic crisis."<ref>{{Cite magazine |date=30 April 2007 |title=High Inflation Impeding Burma's Economy, Says NLD |url=http://www.irrawaddy.org/article.php?art_id=7064 |url-status=dead |magazine=[[The Irrawaddy]] |archive-url=https://web.archive.org/web/20090116020035/http://www.irrawaddy.org/article.php?art_id=7064 |archive-date=16 January 2009 |access-date=30 April 2007}}</ref>

In recent years, China and India attempted to strengthen ties with Myanmar for mutual benefit. The European Union and some nations including the United States and Canada imposed investment and trade sanctions on Burma. The United States banned all imports from Burma, though this restriction was since lifted.<ref name="turnell" /> Foreign investment comes primarily from China, Singapore, South Korea, India, and Thailand.<ref>{{Cite news |last=Fullbrook |first=David |date=4 November 2004 |title=So long US, hello China, India |work=Asia Times |url=http://www.atimes.com/atimes/Southeast_Asia/FK04Ae03.html |url-status=unfit |access-date=14 July 2006 |archive-url=https://web.archive.org/web/20041106012133/http://atimes.com/atimes/Southeast_Asia/FK04Ae03.html |archive-date=6 November 2004}}</ref>

===Economic liberalisation (2011–2019)===
{{Prose|date=March 2024|section}}
{{Main|Economic liberalization in Myanmar}}
In 2011, when new President [[Thein Sein]]'s government came to power, Burma embarked on a major policy of reforms including anti-[[corruption]], [[currency exchange rate]] regulation, foreign investment laws and [[taxation]]. [[Foreign direct investment|Foreign investments]] increased from US$300 million in 2009–10 to a US$20 billion in 2010–11 by about 6567%.<ref name="Economic reforms">{{Cite news |last=Joseph Allchin |date=20 September 2011 |title=Taste of democracy sends Burma's fragile economy into freefall |work=The Independent |url=https://www.independent.co.uk/news/world/asia/taste-of-democracy-sends-burmas-fragile-economy-into-freefall-2357511.html |access-date=25 September 2011 |archive-date=2 August 2017 |archive-url=https://web.archive.org/web/20170802102604/http://www.independent.co.uk/news/world/asia/taste-of-democracy-sends-burmas-fragile-economy-into-freefall-2357511.html |url-status=dead }}</ref> Large inflow of capital results in stronger Burmese currency, [[kyat]] by about 25%. In response, the government relaxed import restrictions and abolished export taxes. Despite current currency problems, Burmese economy is expected to grow by about 8.8% in 2011.<ref>{{Cite web |last=JOSEPH ALLCHINJOSEPH |date=23 September 2011 |title=Burma tells IMF of economic optimism |url=http://www.dvb.no/news/burma-tells-imf-of-economic-optimism/17803 |url-status=dead |archive-url=https://web.archive.org/web/20110926233735/http://www.dvb.no/news/burma-tells-imf-of-economic-optimism/17803 |archive-date=26 September 2011 |access-date=25 September 2011 |publisher=DVD}}</ref> After the completion of 58-billion dollar Dawei deep seaport, Burma is expected be at the hub of trade connecting Southeast Asia and the South China Sea, via the Andaman Sea, to the Indian Ocean receiving goods from countries in the Middle East, Europe and Africa, and spurring growth in the ASEAN region.<ref>{{Cite news |last=CHATRUDEE THEPARAT |date=28 August 2011 |title=Big-shift-to-dawei-predicted |work=Bangkok Post |url=http://www.bangkokpost.com/news/local/206376/big-shift-to-dawei-predicted |archive-url=https://web.archive.org/web/20110209125551/http://www.bangkokpost.com/news/local/206376/big-shift-to-dawei-predicted |url-status=dead |archive-date=9 February 2011 |access-date=27 August 2011}}</ref><ref name="Dawei Seaport">{{Cite web |last=Thein Linn |date=15–21 November 2010 |title=Dawei deep-sea port, SEZ gets green light |url=http://www.mmtimes.com/2010/business/549/biz54901.htmlmmtimes |access-date=25 September 2011 |website=Myanmar times}}{{Dead link|date=July 2018 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

In 2012, the [[Asian Development Bank]] formally began re-engaging with the country, to finance infrastructure and development projects in the country.<ref>{{Cite news |last=Yap |first=Karl Lester M. |date=1 March 2012 |title=ADB Preparing First Myanmar Projects in 25 Years as Thein Opens |work=Bloomberg |url=https://www.bloomberg.com/news/2012-03-01/adb-preparing-first-myanmar-projects-in-25-years-as-thein-opens.html |access-date=15 March 2012 |archive-date=27 April 2012 |archive-url=https://web.archive.org/web/20120427235537/http://www.bloomberg.com/news/2012-03-01/adb-preparing-first-myanmar-projects-in-25-years-as-thein-opens.html |url-status=live }}</ref> The $512 million loan is the first issued by the ADB to Myanmar in 30 years and will target banking services, ultimately leading to other major investments in road, energy, irrigation and education projects.<ref name="burmaadb">{{Cite news |date=28 January 2013 |title=ADB ends 30-year hiatus in Myanmar |publisher=Investvine.com |url=http://investvine.com/adb-ends-30-year-hiatus-in-myanmar/ |access-date=8 February 2013 |archive-date=28 September 2013 |archive-url=https://web.archive.org/web/20130928115856/http://investvine.com/adb-ends-30-year-hiatus-in-myanmar/ |url-status=dead }}</ref>

In March 2012, a draft foreign investment law emerged, the first in more than 2 decades. This law oversees the unprecedented liberalisation of the economy. It for example stipulates that foreigners no longer require a local partner to start a business in the country and can legally lease land.<ref name="aht">{{Cite news |last=Aung Hla Htun |date=16 March 2012 |title=Exclusive: Myanmar drafts new foreign investment rules |work=Reuters |url=https://www.reuters.com/article/us-myanmar-investment-idUSBRE82F0IY20120316 |access-date=17 March 2012 |archive-date=16 March 2012 |archive-url=https://web.archive.org/web/20120316160225/https://www.reuters.com/article/2012/03/16/us-myanmar-investment-idUSBRE82F0IY20120316 |url-status=live }}</ref> The draft law also stipulates that Burmese citizens must constitute at least 25% of the firm's skilled workforce, and with subsequent training, up to 50–75%.<ref name="aht" />

On 28 January 2013, the government of Myanmar announced deals with international lenders to cancel or refinance nearly $6 billion of its debt, almost 60 per cent of what it owes to foreign lenders. Japan wrote off US$3 Billion, nations in the group of [[Paris Club]] wrote off US$2.2 Billion and Norway wrote off US$534 Million.<ref name="burmadebt13">{{Cite news |date=29 January 2013 |title=Myanmar clears 60% of foreign debt |publisher=Investvine.com |url=http://investvine.com/myanmar-clears-60-of-foreign-debt/ |access-date=29 January 2013 |archive-date=10 April 2013 |archive-url=https://web.archive.org/web/20130410142452/http://investvine.com/myanmar-clears-60-of-foreign-debt/ |url-status=dead }}</ref>

Myanmar's inward foreign direct investment has steadily increased since its reform. The country approved US$4.4 billion worth of investment projects between January and November 2014.<ref name="InvestAsian">{{Cite news |date=7 January 2015 |title=Myanmar FDI Expected to Jump 70% |publisher=InvestAsian.com |url=http://www.investasian.com/2015/01/07/myanmar-fdi-expected-jump-70/ |access-date=7 February 2015 |archive-date=7 February 2015 |archive-url=https://web.archive.org/web/20150207161705/http://www.investasian.com/2015/01/07/myanmar-fdi-expected-jump-70/ |url-status=live }}</ref>

According to one report released on 30 May 2013, by the McKinsey Global Institute, Burma's future looks bright, with its economy expected to quadruple by 2030 if it invests in more high-tech industries.<ref>{{Cite web |last=Calderon |first=Justin |date=30 May 2013 |title=Myanmar's economy to quadruple by 2030 |url=http://investvine.com/myanmars-economy-to-quadruple-by-2030/ |url-status=dead |archive-url=https://web.archive.org/web/20140102191843/http://investvine.com/myanmars-economy-to-quadruple-by-2030/ |archive-date=2 January 2014 |access-date=30 May 2013 |website=Inside Investor}}</ref> This however does assume that other factors (such as drug trade, the continuing war of the government with specific ethnic groups, etc.) do not interfere.

As of October 2017, less than 10% of Myanmar's population has a bank account.<ref name="veconomist">{{Cite news |date=12 October 2017 |title=In dirt-poor Myanmar, smartphones are transforming finance |newspaper=[[The Economist]] |url=https://www.economist.com/news/finance-and-economics/21730199-rudimentary-financial-services-are-offer-places-roads-do-not-reach |access-date=13 October 2017 |archive-date=13 October 2017 |archive-url=https://web.archive.org/web/20171013172541/https://www.economist.com/news/finance-and-economics/21730199-rudimentary-financial-services-are-offer-places-roads-do-not-reach |url-status=live }}</ref> As of 2016–17 approximately 98 percent of the population has smartphones and mobile money schemes are being implemented without the use of banks similar to African countries.

=== Economic crisis (2020–present) ===
{{More|2021 Myanmar coup d'état}}
Myanmar's economy has been in [[economic crisis]] since [[Myanmar coup d'état|the coup d’état]] in February 2021.<ref>{{Cite news |title=How the coup is destroying Myanmar's economy |url=https://eastasiaforum.org/2021/06/23/how-the-coup-is-destroying-myanmars-economy/ |url-status=live |archive-url=https://web.archive.org/web/20240124093134/https://eastasiaforum.org/2021/06/23/how-the-coup-is-destroying-myanmars-economy/ |archive-date=24 January 2024 |access-date=24 January 2024 |work=[[East Asia Forum]]}}</ref><ref>{{Cite news |title=Military Coup Has Inflicted 'Permanent' Damage on Myanmar, World Bank Says |url=https://thediplomat.com/2023/06/military-coup-has-inflicted-permanent-damage-on-myanmar-world-bank-says/ |url-status=live |archive-url=https://web.archive.org/web/20240124093133/https://thediplomat.com/2023/06/military-coup-has-inflicted-permanent-damage-on-myanmar-world-bank-says/ |archive-date=24 January 2024 |access-date=24 January 2024 |work=[[The Diplomat (magazine)|The Diplomat]]}}</ref><ref>{{Cite news |title="The Latest @ USIP: For Myanmar's Economy to Recover, Military Rule Must End " Sean Turnell says |url=https://www.usip.org/blog/2023/07/latest-usip-myanmars-economy-recover-military-rule-must-end |url-status=dead |archive-url=https://web.archive.org/web/20240124093132/https://www.usip.org/blog/2023/07/latest-usip-myanmars-economy-recover-military-rule-must-end |archive-date=24 January 2024 |access-date=24 January 2024 |work=[[United States Institute of Peace]]}}</ref><ref>{{Cite web |date=February 2023 |title=Myanmar Economy in Tailspin, 2 Years after the Military Coup |url=https://dkiapcss.edu/myanmar-economy-in-tailspin-2-years-after-the-military-coup/ |url-status=live |archive-url=https://web.archive.org/web/20240124093133/https://dkiapcss.edu/myanmar-economy-in-tailspin-2-years-after-the-military-coup/ |archive-date=24 January 2024 |access-date=24 January 2024 |website=dkiapcss.edu}}</ref><ref>{{Cite news |title='Riding a rollercoaster' in Myanmar's post-coup economy |url=https://www.aljazeera.com/news/2023/2/2/riding-a-rollercoaster-in-myanmars-post-coup-economy |url-status=live |archive-url=https://web.archive.org/web/20240124093132/https://www.aljazeera.com/amp/news/2023/2/2/riding-a-rollercoaster-in-myanmars-post-coup-economy |archive-date=24 January 2024 |access-date=24 January 2024 |work=[[Al Jazeera English]]}}</ref><ref>{{Cite news |title=Myanmar plunges deeper into economic crisis |url=https://eastasiaforum.org/2023/01/24/myanmar-plunges-deeper-into-economic-crisis/ |work=[[East Asia Forum]]}}</ref> On April 30, 2021, the United Nations Development Programme noted that the [[COVID-19 pandemic in Myanmar|COVID-19 pandemic]] and the [[2021 Myanmar coup d'état]] could reverse economic gains made over the last sixteen years.<ref>{{cite web |title=COVID-19, Coup d'Etat and Poverty: Compounding Negative Shocks and Their Impact on Human Development in Myanmar |url=https://www.asia-pacific.undp.org/content/rbap/en/home/library/democratic_governance/covid-19-coup-d-etat-and-poverty-impact-on-myanmar.html |website=United Nations |publisher=United Nations Development Program |access-date=10 May 2021 |archive-date=7 May 2021 |archive-url=https://web.archive.org/web/20210507125826/https://www.asia-pacific.undp.org/content/rbap/en/home/library/democratic_governance/covid-19-coup-d-etat-and-poverty-impact-on-myanmar.html |url-status=live }}</ref> Overall, Myanmar’s economy under SAC rule is defined by stagnation, inflation, capital flight, and fractured governance.<ref name=":3">{{Cite web |date=2025-03-11 |title=Challenges and Priorities for Myanmar’s Conflicted Economy |url=https://fulcrum.sg/challenges-and-priorities-for-myanmars-conflicted-economy/ |access-date=2025-05-20 |website=FULCRUM |language=en-US}}</ref> With no political resolution in sight, prospects for recovery and inclusive growth remain bleak. The SAC’s economic strategy prioritizes regime survival through [[Natural resource|resource extraction]] and coercive controls, such as forced currency conversions and [[price fixing]].<ref name=":3" /> This erratic and reactionary governance has undermined investor confidence and distorted markets.<ref name=":3" />

Under the military-led [[State Administration Council]] (SAC), Myanmar’s economy has sharply declined, becoming the weakest in Southeast Asia.<ref name=":3" /> In fiscal year 2024-25, real [[Gross domestic product|GDP]] is projected to contract by 1%, continuing a prolonged downturn following an 18% collapse post-coup.<ref name=":3" /> Agriculture shrank by 4%, while industry and services showed no growth.<ref name=":3" /> As the formal economy contracts, informal and illicit sectors have expanded. Myanmar is now the world’s largest opium producer and a major hub for synthetic drugs and online [[Scam center|scam centers]].<ref name=":3" /> Foreign investment has plummeted, with FDI approvals dropping from over $5 billion in fiscal year 2019-20 to $662 million in fiscal year 2023-24. International sanctions, financial blacklisting, and growing regulatory opacity have further discouraged engagement.<ref name=":3" />

Poverty has surged nationwide, with 77% of households now poor or near-poor, up from 58% in 2017.<ref name=":3" /> High inflation—driven by extensive money printing—peaked at 35% in 2022 and remains elevated, particularly for food and transport.<ref name=":3" /> Real wages have fallen across sectors, deepening household vulnerability. Labour shortages have worsened due to mass outmigration, particularly after the [[Conscription in Myanmar|2024 conscription law]].<ref name=":3" /> An estimated one-fifth of the population has left their communities due to conflict or hardship, draining the workforce and reducing productivity.<ref name=":3" /> Trade declined in 2023 after a brief rebound, with exports down $4 billion and land border trade sharply reduced in 2024.<ref name=":3" /> The financial sector remains weak, with liquidity shortages, low public trust, and a shrinking microfinance industry.<ref name=":3" />

When the [[Myanmar Kyat|kyat]] fell by a third of its pre-coup value, the [[Central Bank of Myanmar|central bank]] then sold $600 million worth of [[foreign reserves]] (10% of the entire country's total) to prop up the kyat. By April 2022, reserves dwindled, foreign investment fell and remittances plummeted. This led the junta to impose [[capital controls]] and import restrictions which led to shortages of diabetes and cancer medicines.<ref>{{Cite news |title=An economically illiterate junta is running Myanmar into the ground |newspaper=The Economist |url=https://www.economist.com/asia/2022/09/15/an-economically-illiterate-junta-is-running-myanmar-into-the-ground |access-date=2022-10-04 |issn=0013-0613 |archive-date=4 October 2022 |archive-url=https://web.archive.org/web/20221004163107/https://www.economist.com/asia/2022/09/15/an-economically-illiterate-junta-is-running-myanmar-into-the-ground |url-status=live }}</ref>

The overall loss of skilled workers has contributed to a 9–11% GDP contraction since 2020.<ref name=":03">{{Cite web |date=2025-03-04 |title=Myanmar’s Worsening Human Resource Crisis |url=https://fulcrum.sg/myanmars-worsening-human-resource-crisis/ |access-date=2025-05-20 |website=FULCRUM |language=en-US}}</ref> With the SAC prioritizing military aims over economic and human development, Myanmar faces a prolonged human resource crisis that could impact its economic recovery for decades.<ref name=":03" />