Myanmar's GDP down sharply in 1998-

[darnott@xxxxxxxxxxx]

Subject: Myanmar's GDP down sharply in 1998-99

[NOTE FROM DAVID ARNOTT: THIS REPORT USES AN EXCHANGE RATE OF KYAT6=US1,
WHEREAS ELSEWHERE (SEE ENCLOSED 27 OCTOBER XINHUA REPORT) A RATE OF
KYAT300=US$ IS USED. IF THE 300/1 RATE WERE USED HERE, BURMA'S GDP WOULD BE
VALUED AT  $150,438,000. -- $US150MILLION. ISN'T THIS A BIT LOW, EVEN FOR
BURMA? THERE MUST BE SOMETHING WRONG WITH THE FIGURES OR MY ARITHMETIC.
COULD WE HAVE SOME EXPERT COMMENT FROM OUT THERE, PLEASE]

Myanmar's GDP down sharply in 1998-99

Xinhua, Yangon 1 November 1999. Myanmar's national gross 
domestic product (GDP) was valued at 45.1314 billion kyats (7.521 billion
U.S. dollars) in fiscal 1998-99 which ended in March, down by 39.28 percent 
from the previous year's 74.329 billion kyats (12.38 billion dollars),
according 
to official statistics available here Monday. 

The sharp fall is seen mainly due to the impact of the asian financial
crisis which 
started in july 1997. The statistics show that Myanmar received only 29.45
million 
dollars of foreign investment in the 1998-99, accounting for only 3.78
percent and 
1.04 percent of those drawn in 1997-98 and 1996-97. Myanmar has admitted that 
due to the effect of the Asian financial crisis, foreign investment from
member countries
of the Association of Southeast Asian Nations fell by 70 percent. Moreover, as 
impacted by the financial crisis, a lot of foreign companies have withdrawn
from Myanmar. 

The sharp drop of GDP is also seen to be linked with the economic sanctions
imposed on 
the country by the United-States-led Western countries since may 1997 as
well as by some 
international financial organizations including the World Bank. 

Meanwhile, as far as Myanmar's domestic political situation is concerned,
contradiction 
between the government and the opposition National League for Democracy
(NLD) has 
deepened  as there is no feasible settlement on major issues such as the
drawing of the state
constitution and the setting up of the People's Parliament. This has also a
negative effect 
to the country's economic development. 

*******************

Myanmar's income from taxes drops 

Xinhua, Yangon, 27 October 1999. Myanmar's State Internal Revenue 
Department collected a total of 27.521 billion kyats (91.7 million U.S.
dollars) 
of taxes in the first half of this year, a 2.5 percent drop from the same
period 
of last year. According to the latest official economic indicators, in the 
half-year period, Myanmar also gained a total of 389 million dollars from
customs 
duties, a fall of 46.34 percent.  

To cope with the impact of the Asian financial crisis, the Myanmar government 
has adopted some new policies to collect taxes in the country in recent years. 
Exemption of customs duties on the import of agricultural implements,
including 
related machinery, pesticide and fertilizer, was among the measures taken to 
ensure that agriculture, the mainstay of the country's economy, is not
effected. 

Other measures include raising the customs duties of luxury goods imported 
and levying an 8 percent commercial tax on commodities sold in foreign
currencies beginning  January 1, 1999. 

[NOTE FROM DAVID ARNOTT: IF MY ARITHMETIC IS CORRECT, THE FIGURES ARE USING
A 300KYAT/US$ EXCHANGE RATE] 
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