Asian Development Outlook 2003 : II. Economic Trends and Prospects in Developing Asia : Southeast Asia Myanmar... Growth in FY2001 was recorded at 11.1%. However, there are reasons to be concerned about prospects. Macroeconomic imbalances persist, and there are growing signs of problems at a structural level. The country faces a complex development agenda. In the short run, priority should be given to reducing fiscal deficits and realigning expenditure priorities. Agricultural liberalization offers potentially large benefits....Outlook for 2003-2004: The Government has targeted 6% GDP growth over the latest 5-year planning period. However, the immediate prospects for fast economic expansion are uncertain. Widespread flooding in 2002 is likely to have had an adverse impact on agricultural activity, which still accounts for over 40% of GDP. Also, yields of important agricultural crops have fallen recently against a backdrop of shortages of imported fertilizers and other inputs. Political and economic sanctions limit prospects for exports and FDI, and any significant easing of foreign exchange constraints is unlikely in the near future. Over the medium term, the prospects for growth will, of course, depend crucially on policy choices. If macroeconomic imbalances and structural distortions persist, growth will undoubtedly suffer. If, however, a credible and sustained effort at reform were to begin, the prospects for sustainable economic expansion and poverty reduction would be good."