IMF Wants To Ensure Myanmar's Sustainable GDP Growth
The International Monetary Fund ( IMF) has stressed the need to ensure Myanmar's GDP growth is sustainable and inclusive through the "decisive implementation" of a broad range of policy and structural reforms, state media quoted a statement of the IMF Thursday.
The IMF predicted that Myanmar will see a slight pick-up in growth to 8.5% in the current FY 2014-15, higher than its 7.8% forecast in April.
"Inflation is expected to remain around an annual rate of 6.5 percent this year while increasing capital flows outweigh a widening external current account deficit and money and credit to the economy will continue to expand at double-digit rates," IMF's Myanmar mission chief was quoted as saying.
The IMF mission visited Myanmar early this month for consultation and discussions with Myanmar finance officials, parliamentarians and representatives from the private and civil society as well as donors.
The IMF warns of risk to the economic outlook, pointing out demand-side pressure on inflation and large capital inflow will strain the still-infant macro-economic management tools.
"With the expected entry of foreign banks to the already rapidly growing financial sector, there will be further demand for macroeconomic policy and scarce supervision capacity will be stretched," the IMF said.
It emphasized the importance of keeping the deficit ratio under 5% of GDP (gross domestic product), while expanding development spending.
The IMF suggested issuance of domestic licenses be controlled so as to allow supervision capacity to develop and minimize risks.
The IMF' has pledged to continue to work with Myanmar authorities on macro-economic policies and reforms and intensify technical assistance and training in Myanmar.
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Paul Ebeling
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Source: http://www.news.myanmaronlinecentre.com/2014/06/19/imf-wants-to-ensure-myanmars-sustainable-gdp-growth/
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