By Anjali Sharma
UNITED NATIONS- According to a new report by the UN Development Programme released on Wednesday stated that after the military coup 4 years ago which plunged Myanmar into turmoil, the country is facing an unprecedented “polycrisis,” marked by economic collapse, intensifying conflict, complex climate hazards and deepening poverty.
UNDP report Myanmar’s Enduring Polycrisis: Four Years into a Tumultuous Journey, launched pointed to the bleak picture of a nation in freefall, with nearly half the population living below the poverty line, essential services crumbling and the economy in disarray.
It said that with no political resolution in sight, the crisis is expected to worsen in the coming year.
“The coming year will test Myanmar’s resilience to its limits,” the report warns, called for urgent international engagement to mitigate further suffering and prevent total collapse.
“A more stable and peaceful Myanmar that thrives on a legal economy, protects it human and natural resource assets and invests in the safety and prosperity of all its people is also in the self-interest of its neighbours and the international community writ large,” it added.
Myanmar’s gross domestic product has contracted by nine per cent, reversing the economic progress of the previous decade.
The report said that inflation reached 25.4% in 2024, eroding household purchasing power.
The trade deficit ballooned to 2.2% of GDP, exacerbated by severe restrictions on cross-border commerce, and the currency plummeted over 1,330 kyat per US dollar in 2021 to 4,520 in 2025, made the imports unaffordable and sending prices soaring.
The economic situation worsened further as the country was blacklisted by the Financial Action Task Force for failing to combat money laundering and terrorist financing, the report indicated.
Myanmar’s illicit economy is thriving and it has become the world’s leading producer of opium and heroin, and one of the largest manufacturers of methamphetamines, the report noted.
The jade industry, valued at billions of dollars annually, remains largely unregulated, fuelling corruption and environmental degradation. Illegal gambling, human trafficking, and scam operations have flourished along the country’s porous borders.
Myanmar’s ongoing conflict has displaced more than 3.5 million people within the country and driven many more across its borders.
Internally displaced persons lack vital assistance and protections, and host communities are reeling under the strained resources.
Hunger is reached catastrophic levels and agricultural productivity has declined by 16 per cent since 2021, largely due to conflict and climate-related disasters.
Fertilizer shortages, skyrocketing fuel prices, and trade disruptions have driven the price of the staple rice up by 47 per cent in some regions.
The western state of Rakhine is vulnerable, with food production projected to meet only 20 per cent of local needs by mid-2025, raising fears of famine-like conditions.
Public services are severely affected, with over half of the country lacking access to electricity and hospitals out of service in conflict zones.
The dire economic and security situation has led to an exodus of Myanmar’s youth, with 3.7 million have migrated to Thailand by 2023.
Many face exploitation and forced labor due to restrictive legal migration pathways, while those who remain are at risk of forced conscription into the military, the report stated.
It warned that school enrolment rates have dropped significantly as access to educational facilities has been disrupted by conflict and economic hardships. In the 2023/2024 academic year, over 20 per cent of children were not attending school.
The outlook for Myanmar remains precarious, it said. If current trends continue, poverty will rise, migration will intensify and the country’s fragile economy will struggle under the weight of continued conflict and international isolation, the report warns.
Despite Myanmar’s deepening crisis, opportunities for recovery exist, it added.
The report highlighted the resilience of local communities and the potential of civil society organizations in rebuilding social cohesion.
By engaging the diaspora through education and skills development could help retain and attract talent, while expanding opportunities for women in business and employment could boost household incomes.
The report concluded that agricultural revitalization, through climate-resilient crops and irrigation, is crucial for food security, while investment in environmental protection such as reforestation and mangrove restoration could safeguard jobs in the future.
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