Editing Economy of Myanmar (section)

=== 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" />