Myanmar junta destroys the economy: report

09 February 2022
Myanmar junta destroys the economy: report
Motorists traverse along the Central Hall in Naypyitaw, Myanmar. Photo: EPA

Advocacy group ALTSEAN Burma has released a report detailing how since the February 1, 2021 coup “the junta’s destructive efforts to gain territorial and political control have destroyed Burma’s economy, with unemployment and poverty spiralling out of control.”

Since 1 Feb 2021, the junta’s destructive efforts to gain territorial and political control have destroyed Burma’s economy, with unemployment and poverty spiraling out of control. Its disastrous management caused a major crisis in the banking and electricity sectors.

Widespread boycotts on military products and bills led to a 35% decrease in fiscal revenue in 2021, prompting the junta to print money to fund itself. The Myanmar kyat (MMK) lost over half its value, pushing up the prices of fuel, food, and imported goods.

Foreign investment dropped by 22% in 2020/2021. The post-coup turmoil and crackdown on civil society alarmed international firms, forcing some to leave and forcing the junta to partner with China to fund development projects.

The regime turned to natural resource extraction for much needed foreign revenue, leading to a dramatic increase in illegal logging and mining. Oil and gas companies continued to provide a lifeline to the junta, which is expected to cash in an estimated USD 1.5 billion in 2021/2022.

In February 2021, International Financial Institutions (IFIs) and the US government froze over USD 12 billion, depriving the junta of these funds.