Flag description:
red with a blue rectangle in the upper hoist-side corner bearing,
14 white five-pointed stars encircling a cogwheel containing a stalk
of rice; the 14 stars represent the seven administrative divisions
and seven states
Economy Burma
Economy - overview:
Burma, a resource-rich country, suffers from pervasive government
controls, inefficient economic policies, and rural poverty. The
junta took steps in the early 1990s to liberalize the economy after
decades of failure under the "Burmese Way to Socialism," but those
efforts stalled, and some of the liberalization measures were
rescinded. Burma does not have monetary or fiscal stability, so the
economy suffers from serious macroeconomic imbalances - including
inflation, multiple official exchange rates that overvalue the
Burmese kyat, and a distorted interest rate regime. Most overseas
development assistance ceased after the junta began to suppress the
democracy movement in 1988 and subsequently refused to honor the
results of the 1990 legislative elections. In response to the
government of Burma's attack in May 2003 on AUNG SAN SUU KYI and her
convoy, the US imposed new economic sanctions against Burma -
including a ban on imports of Burmese products and a ban on
provision of financial services by US persons. A poor investment
climate further slowed the inflow of foreign exchange. The most
productive sectors will continue to be in extractive industries,
especially oil and gas, mining, and timber. Other areas, such as
manufacturing and services, are struggling with inadequate
infrastructure, unpredictable import/export policies, deteriorating
health and education systems, and corruption. A major banking crisis
in 2003 shuttered the country's 20 private banks and disrupted the
economy. As of December 2005, the largest private banks operate
under tight restrictions limiting the private sector's access to
formal credit. Official statistics are inaccurate. Published
statistics on foreign trade are greatly understated because of the
size of the black market and unofficial border trade - often
estimated to be as large as the official economy. Burma's trade with
Thailand, China, and India is rising. Though the Burmese government
has good economic relations with its neighbors, better investment
and business climates and an improved political situation are needed
to promote foreign investment, exports, and tourism.
GDP (purchasing power parity):
$80.11 billion (2005 est.)
GDP (official exchange rate):
$7.464 billion (2005 est.)
GDP - real growth rate:
5.2% (2005 est.)
GDP - per capita (PPP):
$1,700 (2005 est.)
GDP - composition by sector: agriculture: 56.4% industry: 8.2% services: 35.3% (2005 est.)
Labor force: 27.75 million (2005 est.)
Labor force - by occupation: agriculture: 70% industry: 7% services: 23% (2001)