ISAS Insights

The recent visit by India's Prime Minister Manmohan Singh to Myanmar had as much to do with bilateral trade as with diplomacy and security. The Gross Domestic Product (GDP) growth in Myanmar firmed up to 5.1 per cent in 2009 after a decade of anaemic growth. 2010 was even better, at close to 5.5 per cent. Growth in the neighbouring countries, especially those that import gas, also helped to boost these GDP figures. Nominal GDP has risen from US$ 16.7 billion to an estimated US$ 35.2 billion in 2010. There are also large projects that have been committed by foreign investors in power, petroleum and infrastructure that are likely to contribute to Myanmar's economic growth in the next few years. Natural gas reserves are estimated to be 2.54 trillion cubic metres, and Myanmar is emerging as a major supplier of gas to its neighbours. It has also large deposits of metals, minerals and gems, and accounts for 90 per cent of the global production of rubies.