Arakan State’s economy described as hard-hit by third wave of Covid-19

By DMG 29 Sep 2021

DMG Newsroom
29 September 2021, Sittwe 

Local businesspeople say Arakan State’s economy has contracted dramatically due to the third wave of Covid-19 and political instability in Myanmar.  

During the first and second waves of the pandemic, Arakan State’s main industries, including the rice trade and fisheries, declined by 50%, according to businesspeople. 

The economic downturn has been exacerbated by the political unrest in Myanmar since the country’s February 1 military coup, said U Tin Aung Oo, chairman of the Rakhine State Chamber of Commerce and Industry. 

“At present, the prices of imported goods are about half as high as before. Fuel prices have risen from K500 to K700. So the economic impact is huge,” he explained. 

Due to the current situation, financial instability has created various difficulties in trade and other matters. 

The Maungdaw border trade camp, a major trading facility in Arakan State, and the Sittwe border trade camp in the state capital have been closed since July 15 due to the pandemic’s third wave. 

U Khin Maung Gyi, vice chairman of the Rakhine Economic Initiative Public Co Ltd (REIC), said the effects of ongoing political instability in Myanmar were more severe than the effects of the Covid-19 crisis. 

“I think the country’s economy is going to get worse. Due to financial constraints, the prices of products will be higher,” he said. 

The death toll during the third wave of Covid-19 in Arakan State has far exceeded the combined total of the first two waves, but the number of new cases has been steadily declining since August, with only four cases reported on September 28. 

Despite the declining Covid-19 death and infection rates in Arakan State, the junta-controlled Ministry of Health is urging the public not to be complacent when it comes to the virus.