Bank Service Tips

World Bank’s Growth Forecast For Myanmar Not Encouraging For Investors

Visitors usually expect Yangon Restaurants to serve traditional Asian cuisine with exotic flavours, rich aromas and spices. However, in recent years, many restaurants have started to serve international food to reflect a more cosmopolitan character. Aside from good food, there are restaurants in Yangon that provide a perfect hangout for people.

The tourism sector is facing a lot of challenges because tourist arrivals dropped to 0.7% for the first 9 months of the year if compared to last year’s 7.1%. Tourist arrivals from non-Asian regions have dropped significantly but were more than offset by tourist arrivals from Asia.In 2017, tourists from the Western World cancelled their bookings and tour packages after news of Rakhine violence spread globally.

According to a report that was released by the World Bank, Myanmar is expected to grow at a slower rate of 6.2% this year compared to the 6.8% last year. Prospects for the economy are positive for a longer term but risks to economic growth have also increased. It is important for authorities to execute well planned reforms and sustain the most recent improvements in order to attract new investments.

Meanwhile, U WaiPhyo, managing director of Yathar Cho Industry said that the 6.2% growth forecast made by the World Bank is not encouraging for a market like Myanmar. There is no sufficient variety of businesses that can sustain further growth of the economy. The market is too small and the government needs a better grasp of the micro and macroeconomic situations to improve growth.

The Rakhine crisis has not only affected the tourism sector; it has also prompted the EU to consider a revocation of trade benefits that were awarded to exporters under the Generalized System of Priorities (GSP). If GSP is withdrawn, the garment manufacturing industry of Myanmar will be severely affected because majority of garment exports are bound for Europe.

Visitors are warmly welcomed in Myanmar which is home to bustling markets, numerous parks and lakes and religious sites. There are Yangon Restaurants, cafes and bars as well as fast food establishments. Local cuisine is served as well as Asian and international food that is prepared by well known chefs.