The International Monetary Fund (IMF) is urging Myanmar to build more financial institutions in order to achieve further development and continuous growth. “I think the government’s decision last year to establish an autonomous central bank is a very important one. Myanmar needs to build more institutions to manage
The International Monetary Fund (IMF) is urging Myanmar to build more financial institutions in order to achieve further development and continuous growth.
“I think the government's decision last year to establish an autonomous central bank is a very important one.
Myanmar needs to build more institutions to manage its economy. The central bank is crucial to that,” said Matt
Davies, who led the IMF mission to Myanmar.
“It takes a while for any institution to build itself,” he said, adding that the financial sector is crucial for facilitating growth.
“Real GDP growth in the 2012-13 fiscal year reached 7.3%, led by services and manufacturing. We expect it to rise further to 7.5% this fiscal year and 7.75% in 2014-15. Credit to the private sector is expected to decline from its current high levels but remain rapid, at around 30 percent,” he said.
Davies also pointed out that inflation is still a cause of concern for the Southeast Asian country.
“Inflation remains elevated and there are pressures from rapid money and credit growth, kyat depreciation and possible electricity price hikes. International reserves are still low and vulnerable to shocks,” said Davies.
Davies also pledged to continue the IMF's support of the Myanmar government's implementation of its economic reform agenda.