Earthquake worsens Myanmar’s economic decline, World Bank says
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The World Bank said direct damages to property and infrastructure from the earthquake were estimated at US$11 billion (S$14.1 billion), or 14 per cent of the nation’s GDP.
PHOTO: AFP
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BANGKOK - Myanmar’s beleaguered economy is expected to contract by 2.5 per cent in the 2025/26 fiscal year, largely due to the devastating impact of a powerful earthquake in late March
The World Bank said direct damage to property and infrastructure from the 7.7-magnitude quake was estimated at US$11 billion (S$14.1 billion), or 14 per cent of the nation’s gross domestic product, estimating that economic output would be about US$2 billion lower than it otherwise would have been because of the quake.
The quake affected more than 17 million people, with nine million severely impacted, the World Bank said.
According to Myanmar’s ruling junta, the death toll has topped 3,700.
World Bank division director for Thailand and Myanmar Melinda Good said in a statement: “The earthquake caused significant loss of life and displacement, while exacerbating already difficult economic conditions, further testing the resilience of Myanmar’s people.
“Recovery efforts are essential to help the most vulnerable populations.”
A junta spokesman did not respond to a call from Reuters seeking comment on the report.
In December, the World Bank had projected Myanmar’s economy would shrink 1 per cent in the 2024/25 fiscal year that ended in March due to the severe flooding in the country.
Myanmar has been in turmoil since the military seized power in a coup
There have been international efforts to stall the conflict, but rebels have accused the junta of breaching a ceasefire called to allow relief efforts to reach earthquake-affected areas.
The World Bank said the hardest-hit regions of Mandalay and Naypyitaw were expected to lose up to one-third of their production between April and September before a partial recovery in the second half of the fiscal year.
The earthquake could increase the national poverty rate by 2.8 percentage points, pushing more households into poverty, the report stated.
A survey before the quake estimated the poverty rate at 31 per cent in 2024.
World Bank senior economist and programme leader for Thailand and Myanmar Kim Edwards said: “Myanmar’s compounding crises have put household coping mechanisms under severe stress.” REUTERS
