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Economy

Myanmar's FDI rush recedes

Confusion about transfer of power dragging down real economic growth rate

YANGON -- Myanmar's economy looked like it was enjoying a brisk tailwind after progress in democratization led the U.S. to lift its sanctions last year, but the boost appears to be waning.

The government that took office in March 2016, with pro-democracy icon Aung San Suu Kyi as its de facto leader, has so far proposed few economic policies. Foreign businesses still see the country as a promising place for infrastructure investment and as a production base, but many are waiting to launch new projects because of uncertainty over economic policies. With its currency falling, Myanmar is expected to post its slowest growth in five years in 2016. One positive sign is a revision of the corporate law expected in the coming months, which is likely to allow foreign businesses to hold stakes in existing domestic companies. If the revision leads to active corporate mergers and acquisitions, it could serve as an opportunity to reinvigorate the economy.

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