Myanmar's economy performed betterin 2017/18 with a modest growth acceleration that partiallyreversed the deterioration experienced in 2016/17. While theoutlook remains positive, risks have intensified. Theeconomy experienced a broad-based increase in real GDPgrowth to 6.4 percent in 2017/181 from 5.9 percent in2016/17. Inflation moderated from 7 percent in 2016/17 to5.5 percent in 2017/18. The exchange rate was stable andappreciated slightly towards the end of the year, thecurrent account deficit narrowed slightly on strong exportgrowth, and the fiscal deficit also narrowed in the firstthree quarters of the fiscal year. While performance remainsstrong and the macroeconomic outlook is positive, there areconcerns that the slow pace of reforms, vulnerabilities inthe financial sector, and limited progress in addressing thehumanitarian crisis in Rakhine are starting to affectbusiness sentiment and could weaken performance. Externalrisks from uncertainty in global trade policy and incommodity prices intensify the downside risks to the growth outlook.
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