Myanmar's economy faces collapse as floods and fighting ravage the nation

Myanmar is facing severe economic challenges nearly four years after the military coup that ousted the democratically elected government led by Aung San Suu Kyi. The World Bank has recently projected a contraction of 1% in the economy for the April-March fiscal year, attributing this downturn to both catastrophic flooding and ongoing armed conflict within the country. Heavy rains and a typhoon have led to the destruction of about 20% of built structures and 10% of roads, displacing approximately 2 million people. The impacts of climate disasters are compounded by fierce fighting between military forces and various opposition and ethnic armed groups, which further disrupts agricultural production and supply chains. The internal strife has left more than half of Myanmar's townships embroiled in conflict, further destabilizing the nation's social and economic fabric. The United Nations has warned that Myanmar is in a state of crisis, where issues such as escalating conflict and criminal networks are becoming increasingly pervasive, leading to significant humanitarian suffering. With the military failing to regain control over the situation, the U.N. special envoy has expressed concerns that the region risks becoming a forgotten crisis—a situation requiring urgent attention and intervention. The military regime's governance has caused the kyat, Myanmar's currency, to devalue dramatically, resulting in over 40% loss against the dollar in informal markets. This devaluation has triggered rampant inflation, with food prices surging over 60% between April and September. The current economic scenario is further highlighted by a significant decline in tourism and manufacturing capabilities due to disrupted electricity supplies. As the military regime stopped publishing trade data in mid-2024, continuing economic evaluation has become increasingly challenging. Should current hostile conditions persist without resolution, the outlook could worsen, with The World Bank indicating that further deterioration in the economy is likely. These developments underscore a dire landscape for Myanmar, where both immediate humanitarian needs and long-term economic recovery seem increasingly unattainable under the current rule. The challenges faced by the Myanmar people are compounded by inequities in access to resources and support, particularly for the displaced population.