Myanmar’s economy risks overheating: IMF

Myanmar’s economy is showing strong signs of overheating and has become increasingly vulnerable over the past 12 months amid rising macroeconomic imbalances, according to the International Monetary Fund (IMF).

An expansionary budget and limited monetary policy tools will see inflation at 13 percent by year-end, the IMF said in its annual 2015 Article IV Consultation report, which advises authorities to urgently tighten monetary policy.

By the end of the year, Myanmar will also have a fiscal deficit of almost 5pc and a current account deficit of around 9pc of GDP, with foreign currency reserves falling to 2.5 months of imports.

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