.png)
The ongoing civil unrest in Myanmar, which began after a military coup in 2021, has had severe economic consequences for the country. Despite some modest recovery growth of 3% last year, Myanmar’s GDP dropped by 17.9% after the coup and is projected to grow only by 1% this year. This indicates that a full recovery to pre-coup levels may take decades.
The situation in Myanmar is dire, with a collapsing currency, declining exports, rising unemployment, and a severe humanitarian crisis. Three million people are internally displaced and nearly half the population lives below the poverty line. Thousands of individuals, including opposition party members, human rights activists, and labor leaders, have been imprisoned.
International sanctions have worsened the economic crisis in Myanmar by further exacerbating poor governance and economic mismanagement. The regime’s focus on military spending to maintain control has diverted resources away from essential needs such as public health and education. Since the coup, the Myanmar kyat has plummeted in value by 55% against the dollar, leading to a severe banking crisis. Government-imposed currency controls make it difficult for businesses to access US dollars for imported goods and raw materials, worsening the food crisis by hindering the importation of essential farm equipment and fertilizer. In April 2022, the military government mandated the conversion of US dollar accounts to kyat and restricted US dollar access to certified importers at a high government exchange rate. Any funds leaving the country now require special approval.
In summary, Myanmar’s civil war has caused devastating economic consequences for the country three years later. The damage continues to worsen with each passing month due to international sanctions, poor governance and economic mismanagement that have led to an unsustainable economy that is struggling to recover from its pre-coup levels.
Despite some modest growth last year following a drop of 17.9% after the coup in 2021, Myanmar’s GDP is projected to grow only by 1% this year indicating that full recovery could take decades.
The situation is dire as more than three million people are internally displaced while nearly half of
