IMF stresses efforts to ensure Myanmar's sustainable GDP growth

 The International Monetary Fund ( IMF) has stressed the need to ensure Myanmar's GDP growth is sustainable and inclusive through the "decisive implementation" of a broad range of policy and structural reforms, state media quoted a statement of the IMF as reporting Thursday.
The IMF predicted that Myanmar will see a slight pick-up in growth to 8.5 percent in the current fiscal year of 2014-15, higher than its 7.8 percent forecast in April.
"Inflation is expected to remain around an annual rate of 6.5 percent this year while increasing capital flows outweigh a widening external current account deficit and money and credit to the economy will continue to expand at double-digit rates," IMF Myanmar mission chief Matt Davies was quoted as saying.
The IMF mission visited Myanmar in the first half of this month for consultation and discussions with Myanmar finance officials, parliamentarians and representatives from the private and civil society as well as donors.
The IMF, however, warned of risk to the economic outlook, pointing out demand-side pressure on inflation and large capital inflow will strain the still-infant macro-economic management tools.
"With the expected entry of foreign banks to the already rapidly growing financial sector, there will be further demand for macroeconomic policy and scarce supervision capacity will be stretched," Matt Davies said.
He emphasized the importance of keeping the deficit ratio under 5 percent of gross domestic product (GDP) while also expanding development spending.
He suggested issuance of domestic licenses be controlled so as to allow supervision capacity to develop and minimize risks.
He expressed IMF's pledge to continue to work with Myanmar authorities on macro-economic policies and reforms and intensify technical assistance and training in Myanmar.