Economy - overviewBurma, a resource-rich country, suffers from pervasive government controls, inefficient economic policies, and rural poverty. The junta took steps in the early 1990s to liberalize the economy after decades of failure under the "Burmese Way to Socialism," but those efforts stalled, and some of the liberalization measures were rescinded. Despite Burma's increasing oil and gas revenue, socio-economic conditions have deteriorated due to the regime's mismanagement of the economy. Lacking monetary or fiscal stability, the economy suffers from serious macroeconomic imbalances - including rising inflation, fiscal deficits, multiple official exchange rates that overvalue the Burmese kyat, a distorted interest rate regime, unreliable statistics, and an inability to reconcile national accounts to determine a realistic GDP figure. Most overseas development assistance ceased after the junta began to suppress the democracy movement in 1988 and subsequently refused to honor the results of the 1990 legislative elections. In response to the government of Burma's attack in May 2003 on AUNG SAN SUU KYI and her convoy, the US imposed new economic sanctions in August 2003 including a ban on imports of Burmese products and a ban on provision of financial services by US persons. Further, a poor investment climate hampers attracting outside investment slowing the inflow of foreign exchange. The most productive sectors will continue to be in extractive industries, especially oil and gas, mining, and timber with the latter especially causing environmental degradation. Other areas, such as manufacturing and services, are struggling with inadequate infrastructure, unpredictable import/export policies, deteriorating health and education systems, and endemic corruption. A major banking crisis in 2003 shuttered the country's 20 private banks and disrupted the economy. As of 2007, the largest private banks operated under tight restrictions limiting the private sector's access to formal credit. Moreover, the September 2007 crackdown on prodemocracy demonstrators, including thousands of monks, further strained the economy as the tourism industry, which directly employs about 500,000 people, suffered dramatic declines in foreign visitor levels. In November 2007, the European Union announced new sanctions banning investment and trade in Burmese gems, timber and precious stones, while the United States expanded its sanctions list to include more Burmese government and military officials and their family members, as well as prominent regime business cronies, their family members, and associated companies. Official statistics are inaccurate. Published statistics on foreign trade are greatly understated because of the size of the black market and unofficial border trade - often estimated to be as large as the official economy. Though the Burmese government has good economic relations with its neighbors, better investment and business climates and an improved political situation are needed to promote serious foreign investment, exports, and tourism. GDP (purchasing power parity)$91.13 billion (2007 est.) GDP (official exchange rate)$13.7 billion (2007 est.) GDP - real growth rate5.5% (2007 est.) GDP - per capita (PPP)$1,900 (2007 est.) GDP - composition by sectoragriculture: 53.9% Population below poverty line32.7% (2007 est.) Household income or consumption by percentage sharelowest 10%: 2.8% Inflation rate (consumer prices)39.5% (2007 est.) Investment (gross fixed)12.2% of GDP (2007 est.) Labor force29.26 million (2007 est.) Labor force - by occupationagriculture: 70% Unemployment rate5.2% (2007 est.) Budgetrevenues: NA Industriesagricultural processing; wood and wood products; copper, tin, tungsten, iron; cement, construction materials; pharmaceuticals; fertilizer; natural gas; garments, jade and gems Industrial production growth rate3.9% (2007 est.) Electricity - production6.154 billion kWh (FY06) Electricity - consumption3.744 billion kWh (FY06) Electricity - exports0 kWh (2005) Electricity - imports0 kWh (2005) Oil - production7,700 bbl/day (2006 est.) Oil - consumption20,460 bbl/day (2006 est.) Oil - imports19,180 bbl/day (2004 est.) Oil - exports5,000 bbl/day (2006 est.) Oil - proved reserves1.963 billion bbl (2007 est.) Natural gas - production12.47 billion cu m (2005 est.) Natural gas - consumption3.971 billion cu m (2005 est.) Natural gas - exports8.497 billion cu m (2005 est.) Natural gas - imports0 cu m (2005) Natural gas - proved reserves271.6 billion cu m (1 January 2006 est.) Current Account Balance$1.676 billion (2007 est.) Agriculture - productsrice, pulses, beans, sesame, groundnuts, sugarcane; hardwood; fish and fish products Exports$6.6 billion f.o.b. Exports - commoditiesnatural gas, wood products, pulses, beans, fish, rice, clothing, jade and gems Exports - partnersThailand 48.8%, India 12.7%, China 5.2%, Japan 5.2% (2006) Imports$2.642 billion f.o.b. Imports - commoditiesfabric, petroleum products, fertilizer, plastics, machinery, transport equipment; cement, construction materials, crude oil; food products, edible oil Imports - partnersChina 35.1%, Thailand 22.1%, Singapore 16.4%, Malaysia 4.8% (2006) Reserves of foreign exchange and gold$1.762 billion (31 December 2007 est.) Debt - external$6.914 billion (31 December 2007 est.) Market value of publicly traded shares$NA Economic aid - recipient$144.7 million (2005 est.) Currency (code)kyat (MMK) Exchange rateskyats per US dollar - 1,296 (2007), 1,280 (2006), 5.761 (2005), 5.7459 (2004), 6.0764 (2003) Fiscal year1 April - 31 March |
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Source: CIA World Factbook | |