Key View

• At Fitch Solutions, we attempt to provide context on the drivers of a looming foreign currency shortage on the economy and its possible implications for the Myanmar economy going forward.
• Sanctions, a withholding of international aid funds, and plunging export earnings will all constrain the inflow of foreign currency.
• Combined with

Key View

• The escalating crisis in Myanmar will exacerbate tensions between China and the West, as both seek to maximise their influence in the country through political proxies.
• China has more at stake in Myanmar than Western countries, as Beijing is keen to develop the China-Myanmar Economic Corridor as a key element of its Belt And Road

Key View

• We highlight significant risks to Myanmar’s power and infrastructure sectors over the near to medium term, given the recent political unrest in the market.
• We stress that power and infrastructure projects face being derailed due to the disruption, in particular given the market’s heavy dependence on foreign direct investments (FDI)