(Bloomberg) — Myanmar’s economy remains weak due to high inflation and worsening external pressures amid “elevated levels of conflicts,” according to the World Bank.
The economy is likely to expand 3% this year after contracting a steep 18% last year, said Aaditya Mattoo, chief economist for East Asia and Pacific. The World Bank didn’t issue a growth outlook for 2023 in the report, as some parts of Myanmar’s economy such as manufacturing and construction are struggling, he said.
Myanmar is grappling with soaring inflation and shrinking foreign-currency reserves amid international sanctions following the 2021 coup. Frequent power outages and commodity shortages along with a lingering conflict between pro-democracy groups and the military government is hampering an economic recovery.
The kyat plunged by more than a third last year, prompting the central bank to move to a fixed rate of exchange. World Bank said it may issue its 2023 forecast for Myanmar in subsequent reports.
“There are logistics disruptions which are leading to food shortages and increasing retail prices, further straining household income,” Mattoo said. “We are concerned about it despite slight revival in manufacturing and construction. Overall, we do think there are difficulties that Myanmar’s economy still faces.”
Price pressures will remain high due to the impact of kyat depreciation, logistics constraints, and still-high global oil prices, the World Bank said. Policy uncertainties and the reversal of earlier reforms have inhibited trade and investment in the Southeast Asian country, it said.
While interventions and administrative controls in the foreign exchange market may initially reduce external liquidity pressures, they will have broader negative impact, the World Bank said. The foreign exchange crunch may prevent imports of critical commodities and lead to supply shortfalls.
(Updates with World Bank plan for 2023 Myanmar outlook in next reports.)
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
