Burma is a resource-rich country with a strong agricultural base. It has vast timber, natural gas, and fishery reserves and is a leading source of gems and jade. Tourist potential remains undeveloped because of weak infrastructure and Burma's international image, which has been damaged by the regime's human rights abuses and political oppression. Due to Burma's poor human rights record, the U.S. imposes a range of economic sanctions, including bans on the importation of Burmese products into the U.S. and the export of financial services from the U.S. to Burma. Australia, Canada, and the EU also impose additional economic sanctions on the Burmese regime.
Despite Burma's growing GDP due to increasing oil and gas revenues, the regime's mismanagement of the economy has created a downward economic spiral for the people of Burma. The state remains heavily and inefficiently involved in most parts of the economy, infrastructure has deteriorated, andrule of law does not exist. The majority of Burmese citizens lead a subsistence-level existence with minimal opportunity for economic improvement. Inflation, though now relatively low, is caused primarily by public sector deficit spending and the eroding value of the local currency (the kyat) and has reduced living standards over time. Inflation will likely remain a problem.
The military's commercial entities play a major role in the economy. The limited moves to a market economy have been accompanied by a significant rise in crony capitalism. A handful of individuals loyal to the regime benefit from policies that promote monopoly and privilege. State-controlled activity predominates in energy, heavy industry, and the rice trade.
Burma remains a primarily agricultural economy with 50% of GDP derived from agriculture, livestock and fisheries, and forestry. Cyclone Nargis in May 2008 severely damaged approximately 20% of Burma's rice-producing lands, although most of these fields have since recovered. Manufacturing/industry constitutes only 15% of recorded economic activity, and state industries continue to play a large role in that sector. Trade and services constitute 35% of GDP.
Foreign investment from many nations has declined precipitously since 1997 due to the increasingly unfriendly business environment and political pressure, some in the form of sanctions, from Western governments, consumers, and shareholders. However, new investment from regional neighbors, predominately from China, has increased in recent years and is very difficult to quantify accurately. The government conserves foreign exchange by limiting imports and promoting exports. Published estimates of Burma's foreign trade (particularly regarding imports) are greatly understated because of the large volume of off-book, black-market, illicit, and unrecorded border trade. In the near term, growth will continue to be constrained by government mismanagement and minimal investment. Government economic statistics are often unavailable and always unreliable. According to official figures, GDP growth has been over 10% annually since FY 1999-2000. However, the true rate is likely much lower; the Economist Intelligence Unit estimated that the growth rate in 2009 was 1.8% and predicted 2010 growth to be 3.1%. Burma's limited economic growth results largely from its natural gas exports, which account for over half of Burma's export receipts and foreign direct investment. Natural gas exports will increase significantly once production begins from the offshore Shwe and Shwephyu Fields, estimated to hold 5.7-10 trillion cubic feet of natural gas. Corporations based in China, India, South Korea, Thailand, Russia, Australia, France, and Malaysia have interests in the exploration and development of several offshore and onshore blocks. One U.S. corporation continues to maintain its interests in the energy sector, with an investment that predates U.S. sanctions.
Burma remains the world's second-largest producer of illicit opium--amounting to 5% of the world's total, according to a 2009 UNODC report. Annual production of opium is now estimated to be less than 15% of mid-1990 peak levels. Cultivation has risen for the past three years following a steady decline through 2006, but yields have fallen during that period. Burma is also a primary source of amphetamine-type stimulants in Asia. Although the Burmese Government has expanded its counternarcotics measures in recent years, production and trafficking of narcotics remain major issues in Burma. While the Burmese Government has actively pursued mid-level and independent traffickers, it remains reluctant to investigate, arrest, and prosecute high-level international traffickers associated with ethnic ceasefire groups.
GDP: $ 22.6 billion (2008 Economist Intelligence Unit “EIU “ estimate).
Annual growth rate: 0.9% (2008 EIU estimate); the regime claimed the 2007-2008 rate, the last for which it released statistics, was 13%.
GDP per capita: $438 (2008 EIU estimate).
Inflation rate: 26% (2008 IMF estimate).
Natural resources: natural gas, timber, tin, antimony, zinc, copper, tungsten, lead, coal, limestone, precious stones, hydropower, marine products, and petroleum.
Agriculture: Products--rice, pulses, beans, sesame, peanuts, sugarcane, hardwood.
Industries: Types--natural gas, agricultural processing, knit and woven apparel, wood and wood products, cement, paper, cotton, cotton yarn, sugar, copper, tin, tungsten, iron, construction materials, pharmaceuticals, and fertilizer.
Recorded trade (based on 2008 statistics from Business Information Group): Exports--$6.6 billion. Types --natural gas 38%, agricultural products 18%, precious and semi-precious stones 11%, timber and forest products 8% and marine products 5%. Major markets--Thailand 40%, Hong Kong11%, India 11%, Singapore 13%, China 7.5%, and Malaysia 5.% . Imports--$3.4 billion. Types--lubricant oil and diesel 16.9%, textiles and fabrics 8.6%, machinery parts 8.7%, and steel, iron, and bars 5.8%. Major suppliers--Singapore 30%, China 18%, Bahamas 13% Thailand 6% and Japan 5%.