YANGON, Oct. 5 (Xinhua) -- The economic growth of Myanmar is projected to rise to 7.8 percent in the fiscal year 2016-2017 as the activities of the country's real sector economy remained strong in the first quarter of this fiscal year, according to the East Asia and Pacific Economic Update of World Bank launched in Yangon Wednesday.
The monthly inflation has been averaging 1.5 percent over the first quarter of this fiscal year and high commodity prices due to the flood disaster in this period also drove the inflation pressures.
"Inflation is particularly a bad signal for investors. Myanmar needs to take any tendency to control the inflation," said Sudhir Shetty, chief economist of the World Bank's East Asia and Pacific Region.
The country also faces rising challenges to short-term macroeconomic stability. A combination of fiscal prudence, enhanced monetary operations, exchange rate flexibility and strengthened banking supervision capacity are required to help manage these pressures.
