Myanmar's crisis will 'permanently' scar economy, World Bank warns

Wages are falling as unemployment rises under military regime

The military's takeover of Myanmar in February 2021, and the ensuing policy distortions and violence, have put a deep dent in the economy. (Source photos by Reuters and AP)

THOMPSON CHAU, Contributing writer, and GWEN ROBINSON, Nikkei Asia editor-at-large

June 27, 2023 12:51 JST

TAIPEI/BANGKOK -- Myanmar's economy faces "permanent" damage from distorted policies and the intensifying crisis since the military takeover on Feb. 1, 2021, the World Bank warns in a new report.

"In the medium-term, the deep contraction in 2021, the ensuing weak and uneven recovery, and increasing policy distortions will leave the economy permanently scarred," the global lender said in the report, released on Tuesday.