Myanmar’s economy is thriving but curbed by uncertainty ahead of next year’s general elections and softer private demand, according to the International Monetary Fund (IMF), aseaneconomist.com reported.

IMF economists holding annual Article IV consultations in Myanmar reiterated warnings made last April that “risks are tilted to the downside.” They cited concerns over the fallout from the Rakhine crisis and deficiencies in the banking sector.

“On the domestic front, growth could underperform if fiscal spending does not accelerate sufficiently. Delayed restructuring and recapitalization of the banking system could increase systemic risks with large macro-financial spill overs. A deterioration of the security situation and continued humanitarian issues in Rakhine could weigh on sentiment,” the IMF said in a statement following last week’s visit.