Myanmar’s economy is forecast to contract this year, the World Bank said Wednesday, as flooding and fighting take a severe toll nearly four years after the military ousted its elected government headed by Aung San Suu Kyi.

Myanmar’s GDP is expected to contract by 1 percent in the fiscal year ending March 2025, a downward revision from the previous projection of modest growth.

The World Bank expects Myanmar’s economy to contract in the current fiscal year, as elevated inflation, a slumping currency, and electricity and labor shortages further pressure a war-torn nation.

Myanmar's economy is expected to shrink by 1% in the current fiscal year, the World Bank said on Wednesday, sharply downgrading its economic forecast as severe floods compounded the challenges facing the conflict-torn country.