Sunday, October 4, 2015
Myanmar economy to grow 10%
There is an Asian country that doesn't have an active stock market or even a credit rating. Yet its economy may grow by 10 percent this year. Meet Myanmar, an unlikely growth star.
The frenetic growth in the country formerly known as Burma is in stark contrast to many large emerging market countries that are struggling to muster any economic growth, having been hobbled by the largest capital outflows in nearly three decades,
In an interview with CNBC, Aung Tun Thet, economic adviser to Myanmar's President, said gross domestic product may grow by 10 percent in the financial year through March as Myanmar revamps its infrastructure and tourist inflows pick up. The Asian Development Bank estimates that the economy grew by 7.7% in calendar 2014.
The country has a lot of growth ahead of it as it is starting from such a small base. In addition the demographics are in in its favor as the majority of the population is young. I think with the recent strength in the US dollar causing many frontier and emerging market currencies to depreciate it is time to think about buying on discount. I am more than likely going to add Yoma Strategic Holdings to the portfolio as the vehicle to play the the growth in Myanmar.