Myanmar's economy set to contract as floods and fighting take heavy toll, the World Bank says

abcnews.go.com:

The World Bank forecasts that Myanmar's economy will contract this year, as flooding and fighting take a severe toll nearly four years after the military ousted its government headed by Aung San Suu Kyi

BANGKOK — Myanmar’s economy is forecast to contract this year, the World Bank said Wednesday, as flooding and fighting take a severe toll nearly four years after the military ousted its elected government headed by Aung San Suu Kyi.

In an update issued Wednesday, the bank said about a fifth of all built structures and a tenth of Myanmar’s roads had been damaged by widespread flooding during heavy monsoon rains and a typhoon that swept through the country in September. About 2 million people were left homeless, the report said.

Meanwhile, fighting between the military and opposition forces remains fierce in some parts of the country, disrupting farming and manufacturing.

“The level and intensity of armed conflict remains high, severely affecting lives and livelihoods, disrupting production and supply chains, and heightening uncertainty around the economic outlook,” it said.

Overall, the report said the economy will likely contract 1% in annual terms in the April-March fiscal year.

Pro-democracy guerrillas and ethnic minority armed forces seeking autonomy have been battling the Myanmar army after it took power in early 2021, when generals ousted the elected government of Aung San Suu Kyi

The United Nations estimates that 3.5 million people, or about 6% of the population, have been displaced from their homes, more than half the country's townships are embroiled in conflict and construction of major projects has been delayed, the report said.

The U.N. special envoy for Myanmar recently warned that the Southeast Asian