IMF underscores Myanmar's economic reforms

It forecasted 7.5% growth in the fiscal year 2013-14 and 7.8% in 2014-15

The International Monetary Fund (IMF) has underscored Myanmar's economic reform efforts, forecasting 7.5% growth in the fiscal year 2013-14 and 7.8% in 2014-15.

Myanmar has been undergoing sweeping reforms, which included removing exchange restrictions and adopting a floating rate for the Kyat in the past year, the establishment of an autonomous central bank, and increase in government spending on health and education, a statement of the IMF review team said.

Noting that Myanmar's current target of keeping the deficit below 5% of gross domestic product was appropriate, the statement, however, pointed out that tax revenue remains too low and tax base narrow. Myanmar still needs several years of sustained reform to modernise the country's financial sector, it said, Xinhua reported Thursday.

The IMF promised readiness to continue helping the Myanmar government with reforms through policy advice, progress monitoring, and tailored technical assistance to help build capacity for economy management.

The IMF has also helped Myanmar in coordination with international creditor countries in reducing Myanmar international debt.