The World Bank’s latest economic report released on Tuesday estimated that the damage caused by the Mandalay earthquake could reach $11 billion. The quake affected more than 17 million people and damaged numerous livelihoods and infrastructure.
The World Bank estimates that this could knock about four per cent off Myanmar’s GDP in the 2025-2026 financial year, which ends in March next year, equivalent to US$2.6 billion. The report states that the aftershocks from the powerful quake are likely to cause a loss of about a third of output in the first six months of this financial year in areas hit hard by the quake. However, the World Bank expects output to grow by three percent in the 2026-2027 fiscal year, thanks to stable trade and foreign exchange rates.
The World Bank estimates that while some businesses may recover next year, households affected by the earthquake will still face challenges. The shortage of workers in agriculture and manufacturing could also have a negative impact on Myanmar’s long-term development and poverty reduction. The earthquake affected an estimated 17 million people in Nay Pyi Taw, Mandalay, Sagaing, Bago and Magway regions.
