The World Bank has reported that Myanmar’s economy is expected to contract by 2.5% in the 2025/26 fiscal year, primarily due to the severe impact of a major earthquake in late March. The 7.7 magnitude quake caused an estimated $11 billion in damages to property and infrastructure, equivalent to 14% of the nation’s GDP. This has resulted in a projected economic output loss of approximately $2 billion. The disaster affected over 17 million people, with nine million severely impacted, and the death toll has exceeded 3,700. Melinda Good, Division Director for Thailand and Myanmar, emphasized the need for recovery efforts to support vulnerable populations. The hardest-hit areas, Mandalay and Naypyidaw, may lose up to one-third of their production in the first half of the fiscal year. The report also warns that the earthquake could increase the national poverty rate by 2.8 percentage points, adding further strain to already stressed household coping mechanisms.
— new from Reuters
