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Significance

Since the party took over governing in April 2016, much attention has focused on Myanmar’s political challenges. Yet the country also faces macroeconomic hurdles, which are likely to worsen in 2017.

Impacts

A worsening current account deficit could see further kyat volatility and make reducing dollarisation more difficult.

A cabinet reshuffle is possible this year.

Sharing economic growth dividends will be difficult without (equally elusive) progress in the ethnic peace process.

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