Myanmar is facing one of its toughest challenges yet as it grapples with the aftermath of a catastrophic earthquake that struck on March 28, leaving a trail of destruction in its wake. The 7.7-magnitude quake not only caused massive damage estimated at US$11 billion but also disrupted the lives and livelihoods of more than 17 million people across the country.
The impact of the earthquake was profound, with residential buildings, public infrastructure, and heritage sites in key economic areas bearing the brunt of the disaster. This has dealt a severe blow to Myanmar’s economy, which was already reeling from various other crises before this natural calamity struck.
As experts from the World Bank highlighted in their report,
“The dent to economic output due to the earthquake will be equivalent to about 4% of Myanmar’s GDP in the fiscal year ending March 2026.”
This setback comes at a time when the nation was already facing significant challenges on multiple fronts.
“The economic aftershocks of the earthquake have struck on the back of ongoing challenges from conflict,”
noted the World Bank. The country has been embroiled in a civil war since the military seized power in February 2021, exacerbating an already precarious situation characterized by inflation and dollar shortages.
Furthermore, ongoing conflict between rebel groups seeking independence and government forces has led to mass displacement, with approximately 3.5 million people forced to flee their homes according to United Nations estimates. Inflation rates have soared, reaching 34.1% in April and are forecasted to remain high due to supply chain disruptions caused by both conflict-related issues and logistical challenges arising from the earthquake.
Amidst these hardships, it is projected that poverty rates may increase by 2.8 percentage points from an already alarming rate of 31% last year. The budget deficit is expected to widen significantly as well, with estimates suggesting an increase from 5.1% to 6.9% by March next year – further straining financial resources within the country.
Melinda Good, World Bank Division Director for Thailand and Myanmar emphasized that
“Recovery efforts are essential to help the most vulnerable populations.”
The road ahead for Myanmar will undoubtedly be challenging as it navigates through simultaneous crises while striving towards rebuilding and recovery.
In conclusion, Myanmar finds itself at a critical juncture where resilience and collective efforts are crucial for overcoming these adversities. The path to recovery will require sustained commitment both domestically and internationally as communities work towards restoring stability and prosperity amidst immense challenges.
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